The current corrupt administration is trying hard to bring back rampant inflation.
Inflation is the statist’s gift that keeps on giving. When the value of money goes down, prices go up, including stock prices. Some mental midgets think that the DOW is the single index of how the economy is doing. When the DOW goes up due to money losing its value, the statists will crow that the economy is improving.
With inflation, the government pays entitlements in dollars that are losing their value; this enables the statists to claim that they are increasing benefits, while in reality they are just giving more worthless dollars.
Inflation doesn’t disturb the ruling elite’s benefits, (pay, health insurance, pension) which are adjusted for inflation.
Inflation turns savings into meaningless electronic digits, thus rendering poor all who have worked honestly and saved some money for their retirement.
Inflation makes all dependent on the state, except the ruling elite which doesn’t give a $h!+.
Out of control inflation can lead to a breakdown in the civil order, giving the statists an excuse to increase their control of the public or to do what they really want: establish at long last a Socialist Paradise.
The only reason why we don’t see more inflation is that the country is doing extremently poorly. This reduces demand on goods and keeps prices lower than they would have been.
———and saved some money for their retirement-——
The fallacy is saving. The money should be invested in assets that will rise in value to keep pace with the inflation.
Investing in the American economy via an index fund should preserve the capital and even register real growth. and then there is gold or real estate. All of the above should preserve the relative value after being inflated ,
Inflated dollars are the only way to “manage” federal and state debt, if it truly can be managed. Nobody really expects politicians to make drastic spending cuts. Do they?
For that reason, I am changing my portfolio from safe cash investments to a greater emphasis on stocks. I am about 5 years from retirement, and that is usually the opposite direction people go when they are my age. However, a 3% annuity is a worthless investment if inflation is 6%.