Serious question, how does the reduced value of my savings end up in the pockets of money changers and government?
I realize inflation is a bad thing for me, I just don't understand how it benefits them.
Thanks in advance.
Those first in line for the Newly Printed/Created money get the most value out of it, they can buy tangible property that retains that value with the new money before it has lost it’s value, and since it is new and free to them and a lot of it, prices naturally rise as a result. However Every time a Dollar changes hands it loses value, by the time it filters through the government and the banks and wall street down to the regular society, prices have already gone up and the value has been stolen before you ever saw it.
I would suggest mises.org for some good reading on Money, or The Creature from Jekyl Island which is available online for free, best book on money I ever read.
Inflation always benefits the debtors...today, Governments and Central Banks...it means they can pay off the debt with cheaper money.