Friday, 4 June 2010

Inflation Storm Clouds

That senior economists are even talking about inflation now, having pretended it didn't exist for so long, should be a source of anxiety. That one of them should say something like this should be the prelude to panic.
In an opinion piece for on Friday, Mr Bean writes: "Some people have suggested that a bit of extra inflation now might actually be a good thing. After all, wouldn't it help to get the economy going by reducing the real value of public and private debt? This is severely misguided.

"Aside from the dubious morality of redistributing wealth from savers to borrowers, we have seen from past experience that a bit of inflation has a nasty habit of turning into a lot of inflation."
Deflation was a smoke screen for devaluation and new debt. However, someone has now broken ranks to warn of the true nature of the coming catastrophe: hyperinflation.

We're doomed! Doomed!

Of course, I forgot. Without debt (money - or rather the promise of non-existent money), and more and more of it at that, the entire world economy would collapse into depression. Stupid me...

Get it? I don't. Let's get this straight again, without debt there would be no money = Great Depression II.

Well, you figure it out because I sure can't.

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