Posted on 10/28/2013 9:24:16 AM PDT by Red in Blue PA
WASHINGTON — Inflation is widely reviled as a kind of tax on modern life, but as Federal Reserve policy makers prepare to meet this week, there is growing concern inside and outside the Fed that inflation is not rising fast enough.
Some economists say more inflation is just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment.
The Fed has worked for decades to suppress inflation, but economists, including Janet Yellen, President Obama’s nominee to lead the Fed starting next year, have long argued that a little inflation is particularly valuable when the economy is weak. Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.
(Excerpt) Read more at nytimes.com ...
Inflation is coming in a big way,it’s government’s way of paying it’s debts at a discount.
Reminds me of all the articles about “Funemployment” when the unemployment rates skyrocketed.
And a dictator controlling all ares of the economy with a hyper militarized police force monitoring every financial transaction, communication, and soon, mile driven is the best form of government.
Policies exactly like what we're following now.
I'm sure that TPTB believe that they are so smart that they'll be able to engineer a modest amount of inflation, carefully controlled so as to relieve the pressures they think they see without causing a run-away panic.
We'll see.
“...here is growing concern inside and outside the Fed that inflation is not rising fast enough....”
One needs scientific notation to adequately express the ignorance of liberal economists.
And we need to amp that up by quantum levels to express the ignorance of Krugman. (Really, can anyone with even a 1930s high school education not see past that idiot?)
Inflation is a tax on money, and everybody who has money pays it.
Inflation is a tax on savings and investment ... and us
newsers here at the Times never saw a tax we didn't like!
It's a WIN-WIN situation...............
Well, as Krugman hero John Maynard Keynes said in 1919:
“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, governments 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. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. 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.”
Yes, one more benefit for those who are impulsive and irresponsible. A person 'charged to the max', 'in' over their head, underwater, and maxed-out on everything will benefit. The person's who's careful, saves and lives within their means (most of the middle class) will lose. Big time.
Funemployment. I was going to post the same!
Media by oligarchy.
Next up:
-Starvation: Dwindling American Food Resources -Getting Obesity Under Control.
-Power outages: Americans Rekindling Their Romance with Candles.
-Homelessness: Americans’ New, Care Free Housing Arraingements.
It’s been obvious to me since at least the late 1980’s that eventually the US Government would seek to inflate the national debt away.
What the hell is wrong with them? Oh, I get it. Communism.
With rising prices, the stock market goes up and millions of mental midgets think that “the economy is improving.” Many other numbers go up, and stupid people think that things are improving.
Inflation is the gift that keeps on giving for the leftists.
Inflation reduces the value of savings to essentially zero, wiping out one’s hard-earned savings. (Leftists don’t want you to accumulate money. But it’s all right if they do it.)
Inflation subjects more and more incomes to increased taxes, with “bracket creep.”
Of course, the liberal ruling elite gets automatic pay and pension adjustments and give us the middle finger.
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