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Old 05-22-2012, 12:13 AM   #23
domeffire

Join Date
Oct 2005
Posts
516
Senior Member
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so inflation does not help the government reduce its debt burden unless it is unusually high inflation. Completely wrong. The government borrows at zero, and with inflation running at far higher than this, they save a huge amount of money. There's a reason why they lowered the rate to zero percent interest, and why that will never go up, especially not with the government continuing to borrow at an unprecedented rate in an effort to stave off the deflationary collapse.

They can keep kicking the can down the road - but it won't last much longer. The money simply won't be there.

Also, it's silly to assume inflation will make the things you buy more expensive relative to the value of your labor. I have no idea why you think "providing benefits to those who are selling houses" would drive up housing prices Yeah, it would. Same way that education costs have jumped up. Give people 'free loans' for school, and suddenly school starts charging more. Imagine that. It's almost like that was designed.
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