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To: Kaslin

It should be obvious that Schiff is right. But then you get people like Krugman stating the opposite, that we should print away. We have some certain advantage in our political stability and military might, it causes other nations and people to invest in the dollar, to hoard dollars, to save dollars. That in some ways prevents the full inflationary impact from hitting. But like Schiff says it is easy to print. Everyone can do it and if they have to they will. That negates the entire scheme since if they have to spend more euros or rubles or yen to buy a dollar they can buy fewer of them. And the cycle continues downward.

Debasing currency destroys savings and helps the profligate. Exactly the opposite of what we try to teach our children - work hard, save. What should we teach them now? Take on as much debt as you can, because in 20 years it will only be 1/3 as much?


3 posted on 02/02/2013 4:49:04 PM PST by monkeyshine
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To: monkeyshine
Very interesting article, and interesting perspective on your part. Personally, I still think our socio-economic structure encourages people to save ... but not necessarily to save money. This might be where the Swiss have gone a bit wrong. Money has no value unto itself, but it provides great value when it is used to purchase the means to produce something.

To me, "saving" means investing in something that produces current or future income, or will grow in value over time. A bank account doesn't do that for you, nor does a U.S. Treasury bill that pays an interest rate that doesn't even keep up with inflation.

6 posted on 02/02/2013 9:18:22 PM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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