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To: henkster
henkster said: "Why is this a bad thing?"

It's a bad thing if you are a Baby Boomer who acted responsibly by saving during your working years and who is now looking for a secure way to fund retirement. Dollar denominated investments are going to be hit very hard, with their purchasing value declining from year to year.

To the extent that the government does not simply print the dollars, businesses and other economic activity will have to be more heavily taxed, causing a reduction in such activities.

We know that the government will have to engage in some combination of these two approaches. Finding a way to maintain one's retirement security will involve trying to anticipate which way the government is headed.

13 posted on 01/17/2008 12:04:21 PM PST by William Tell (RKBA for California (rkba.members.sonic.net) - Volunteer by contacting Dave at rkba@sonic.net)
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To: William Tell

Under your second e-mail, depending on how you invest, monetary inflation should not effect the relative value of your real investment. As the dollar inflates, the relative value of the investment should also. Thus, it will yield more inflated dollars and you maintain investment status quo.

Under your 1st e-mail, the purchasing power of “fixed” government payouts diminishes. This is, in my opinion, not a bad thing. It is a financial incentive for people to move off reliance on government handouts. That’s a good thing.


14 posted on 01/17/2008 12:44:13 PM PST by henkster (The koran is "Mein Kampf" written in funny curlie-Q's)
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