Posted on 03/21/2010 4:35:02 PM PDT by TigerBait
Leftist economist John Maynard Keynes (1883–1946) from The Economic Consequences of the Peace sums it up:
“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
(Excerpt) Read more at newsrealblog.com ...
Start buying homes. When your salary increases to $100 billion per year, your mortgage will be inconsequential.
I’m really still having a difficult time getting my brain around what is happening. Not that I don’t believe it, but it’s still hard to believe. I would sure rather witness good history instead of bad.
I’ve sometimes thought that they would like to see inflation. If we see inflation, the problem of underwater mortgages will go away, because the home values will be increased. Of course inflation will cause a whole host of other problems, but that one issue with housing will be “solved”, in the eyes of the types of people running our government, if we had inflation.
Another issue that would be “solved” is the crushing cost of entitlements in the future. If we see inflation, and at the same time, pass legislation locking in low interest payouts on gov’t bonds, then the gov’t could pay off the national debt in cheaper dollars.
And, with inflation, we all go into higher tax brackets, which will give Obama and his boys more to play with.
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They want it because they can destroy all the wealth you have worked your whole life to acquire and then you will become a ward of the state and vote Rat forever.
Ancient Rome did the same thing as well as other civilizations through out history.
Many AMericans converted their entore investment portfolios to Canadian Dollars 3 years ago ad have realized a cool 20 per cent gain in their estate.
Yes, there is no question about it.Monetizing the debt is exactly about debauching the US dollar. The Chinese do not like it one bit.
Inevitably we will have hyper inflation, and by then many Americans will be following their international investments abroad, exiting the country to live elsewhere in freedom and with good health care they pay for themselves. There is not much else they can do as the nationalist socialists take over our free economy and reduce the liberties of a free nation.
A similar dyamic drove our ancestors away from Europe to these shores. Now we descendants must yet again move on seeking freedom and peace.
We had aggressive inflation in the 60s and 70s when liberals ruled the roost- I suspect that they’d like the same now.
The main problem now with doing that now is that China and other foreign powers hold large amounts of the government’s debt, which is denominated in US dollars. That matter would definitely have to be addressed I would think.
And, all older people on fixed incomes will be impoverished.
The only problems with the idiot Keynes’ points:
1. Inflation does not affect people arbitrarily. Those who get and spend the money first, benefit the most from it. Every time it changes hands, the new recipient of the money has less purchasing power and ends up paying more for it. It is usually the richest who get the money first and the poor who get it last. So, it is actually the poor who are most affected by inflation, both in the short-term and in the long-term, as they end up paying higher prices on a long-term bases.
2. We are potentially facing a unique situation where we see an inflation in all necessary products (combined with the elimination of nearly all non-essentials) and a deflation of things like income and home values. This double-edged sword will cause a more rapid and deeper depression than anyone is familiar with.
Keynes is an idiot, but even he, in an open letter to FDR in the NYT 1933, politely called FDR a moron for trying to implement reform and recovery. Keynes’ goal was to first recover and then skim some profits off the top to pay for reform. FDR didn’t listen, and thus we have Obama.
Except if we do their bidding which is to debauch other currencies. We shook down Switzerland last year and forced them to monetize debt. For Canada we didn't even need to threaten, a Goldman alum runs the printing press up there.
I’m a conservative and even I can see how hyperinflation would take care of our biggest problem and that is that we currently have more debt on the books in the country than there is total asset values in dollars to cover it. Or, the country itself is an underwater nation.
Hyperinflation is only bad if you live in an area where it is not possible to grow your own food. Even in a majority of cities in the east it is entirely possible to have a garden capable of sustaining your family in the yard.
It wouldn’t be the worst thing in the world to wipe all the debt all the books and start over. Whatever else you can say about Weimar that whole experience cured Germans permanently from any desire to be fiscally imprudent. I imagine it would have the same effect here.
Our economy will have to be restructured somevway. People who say otherwise have their heads in the sand.
Absolutely correct. The migration has begun. Last one out before the helicopter leaves the embassy roof, please turn out the lights...
Thats exactly how they are able to do this to us. Most people and the entire media keeps thinking...this is America, socialism cant happen and the government isnt out to actually tear this country apart. That only happens in third world countries.
The problem with hyperinflation is that wages never keep pace with it. During periods of hyperinflation, 95% of your wages will go just for food. Your savings are worthless and the whole economy collapses.
You obviously aren’t someone who is nearing retirement age, who has played by the rules, planned for your own retirement and see the very real possibility of that money being not worth the paper it’s printed on. If I were a 25 year old, it would be a different story. I guess if we plan to work at something until we are 80.....
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