Posted on 11/25/2011 5:47:24 PM PST by Chuckmorse
No, inflation robs value and purchasing power from the money of the people, especially ordinary working people. It is not good.
In a perfect world you would have interest free money and nominal inflation to cover a growing population and a little extra credit/money available for entrepreneurs/R&D referred to as progress.
Today, you have runaway inflation in government bonds which will eventually tickle down into the world’s money supply and cause cost-push inflation or much higher cost-of-living even turning into hyper-inflation knowing the way these shit-for-brains politicians handle things.
Today’s banking system uses compounding interest which is inflationary all by itself to a point in time where it would debase any and all currencies connected to it. Can’t stop it mathematically, only a complete breakdown in banking gets you an automatic reset. And that is ugly.
Leverage and overspending just speeds up the process.
Balance budgets or not, it’s to late and there is no intention or possibility of paying off the debt(s). The entire world will have to default to rearrange debt after (so far) about a 40% haircut for starters (i.e. debt forgiveness, like the Greece haircut recently). This would be deflationary. Much pain.
Bankers loathe what free markets can always adjust to >>> means investors always find the safe and stable investment while fleeing risk. Follow the money.
More wars are just a distraction or redirect away from the failures.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.