SEARCH BLOG: ECONOMY and INFLATION
The argument is simple: if we can get inflation running at 4-6% or so, why then all of that debt starts to dissolve. Home prices get fixed. The economy is fixed. [image source]
Well, that would signal the fix is in... that's for sure. If you don't like the terms of your debt, make the debt worthless by devaluing the dollar and inflating everything else. And no one would get hurt except maybe...
- those on fixed incomes
- those who have bought bonds as a savings tool
- those who have lent money
- those who want to eat
- those who have to drive
- those who want to buy something new
Didn't we hear something similar to that before?While this may be more of a problem for low-income/fixed income people, this is a brilliant way to devalue the federal government's debt. But why be so meek? If we could inflate prices by twice, we could effectively cut the debt in half.We should pass that now!If you have savings, you need to spend it all now so that you have assets for bartering later. But if you don't, too bad. We need to inflate prices so that it appears the economy is doing well.We should pass that now!If you are burdened with too much debt that you took on during a period of foolishness, make sure it is fixed rate debt and don't do anything. When we get inflation up and running again, you don't have to work any more to get rid of that debt much easier.We should pass that now!Let's inflate wages and home prices and food prices and energy prices and we will all be much richer.We should pass that now!