Replies

Here's a quote from Keynes on Inflation (the father of inflationist policies): "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity (or fairness) of the existing distribution of wealth.

As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

Yeah, and in years to come Russia poured money out the supply side and brought Russia to its heels. The money supply side nearly destroyed Russia, and Russia wasn't necessarily capitalistic at the time of doing so.

The Keynes model has value; but inflation is a given. There's absolutely no way to make inflation "go away" unless we bomb the tar out of every country and make everyone go back to a third world existence. This is precisely what socialists clamor for.

But just so "inflation" isn't given the only "bad name status" -- those who borrow money for non-investible debt -- do the same thing, effectively. They pour non-existing money into a system -- thereby demanding someone somewhere cover their debt when they go into default.

You can no more stop people from doing stupid things than you can say "inflation" shouldn't exist.

Inflation is as real a factor of "economic life" as are profits and margins, etc.

What's the lib solution: hate the evil credit card companies. But hate the feds even more. It's not the job of credit card companies to "monitor" how people spend the money they borrow from their cards. At least with a loan process, there is securities involved and an approval process.