INFLATION, What inflation?
As we discussed in "Inflation is a Lie," because of the "base effect," over time, the government has to debase more and more money: |
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"But if you compare today's inflation to the '70s, you'll discover something mind-blowing.
In absolute terms, this inflation breakout has already surpassed the inflation of the entire 1970s: |
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In other words, in the past two years, we have had to debase as much money as we did during the entire 1970s.
That's why a minimum of 4% inflation is required to keep up with the money supply.
Keep this up, and soon you'll have to normalize a 6% inflation target—or even 8%.
It's a simple arithmetic certainty.
And while this sucks for citizens, higher inflation is actually in a government's best interest - especially governments with reckless spending habits.
The government will do what is best for the government! |
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