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To: Harrison Bergeron
So you regard a little inflation as the necessary lubricant of the modern economy. I can understand that.

'Sticky' wages and other prices can simply be gradually eroded by inflating. So long as the PTB are disciplined, most economic players will simply make adjustments and move on.

If inflation could merely fluctuate around 3-5% per year, then overpaid civil servants would slowly be cut back to a reasonable income; malinvestments in housing, etc. could gradually be made good by depreciating the currency; and society's more productive members will keep their focus on the carrot of 'more money' instead of upon the stick of 'high taxes'.

Once folks in general cotton on to this fraudulent scheme, however, the 'jig is up'.

We, as a society, continue to live off the moral and political capital of our ancestors. Just like gold, that capital is replacable only by hard, persistent work. The substitution of 'politically correct' rhetoric for the hard truths of history is a perfect analogue of the replacement of gold by government-decreed currency. Just because lies are often more comforting than the truth is no reason to abandon truth; just because gold is more difficult to accumulate than paper and ink does not render it a 'relic' of antiquarian interest only, as we all surely discover sometime in the not-too-distant future.

P.S. Moscow has little influence on world gold prices; the great state of Nevada produces as much gold as Russia.(or near enough!) Besides which, nearly half of all the gold ever mined is in the possession of the U.S. Gov't.

The monetization of debt is just about the worst thing that can happen to an economy short of nuclear war, IMO.

87 posted on 05/01/2002 11:55:50 AM PDT by headsonpikes
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To: headsonpikes
No anarchy here. Just good conservative principle and common sense.
89 posted on 05/01/2002 12:11:18 PM PDT by Harrison Bergeron
[ Post Reply | Private Reply | To 87 | View Replies ]

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