INFLATION, What inflation?

 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:
"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:
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!

Comments

Popular posts from this blog

Critical Thinking, Logic & Problem Solving The Ultimate Guide to Better Thinking, Systematic Problem Solving and Making Impeccable Decisions with Secret Tips to Detect Logical Fallacies Bigrock Thinking

Higher interest rates not lowering interest rates

Global Sea to SK