Rob,
The constant inflation increases tax revenue, and allows the old debt to be paid off in cheape dollarsr. Thus the politicos feel free to spend, as they know that inflation will pay most of the resulting debt.
Young healthy people don't care about inflation because they have little savings and current income rises with inflation. It is the old , and the sick who are trying to get by on savings who are completely screwed.
The poor and lower middle classes are aalso well screwed as there are no unsophisticated mechanisms to save for a rainy day, or old age. People must speculate in order not to be consumed by infflation . Thus the unsophisticated are lambs to the slaughter to the ponzi artists of wallstreet.
If you want to see the result of hyperinflation on a modern liberal society, study Berlin 1920 to 1923. The young and good looking did OK. Google Thomas Mann, libertarian to read a great read on a review of Thomas Manns book about this epoch written in a libertarian perspective.
You need to read Rothbards book what the goverrment has done to your money. I think it is available for free on the Mises.org website.
If you like infalation, you must like the scumbag operators who rise to the top in infaltionary times, such as Donald Trump.
I urge you also to read www.shadowstats.com. Inflation is much higher than reported as is unemployment. I grew up with chronic unemployment and very meager earnings by my dad If you don't think the workings of the economy are important, get out of San Francisco and visit the former working class neighborhoods of Baltimore.
.The main reason you may think the situation is benign is because we have just undergone the longest nearly uninterrupted boom in history. There is a basic axiom in Austrian economics, the bust willl be in proportion to the boom. Oh, but this time it's different., CNBC says. The infltionary deptression we are embarking on now will make the seventys and even the thirties seem like a stroll in the park, as the debt levels relative to GDP are stretched waay beyond those of 1929 or 1972.
To put some numbers in perspective, The mortgage debt in this country has risen faster than the national debt and is in the same order of magnitude, but the derivitive exposure of the fianancial system is by some estimates over 600 Trillion dollars which drawfs the US economy by 20 fold. In other words as this pyramid of derivitives unravels financial nuclear winter is inevitable result unless melted by massive doses of fresh money, in order of maggnitudes above our prpresent money supply.. This is happening. Citycorp announced another 24 billion in writedowns today. Despite signs of inflation busting through the manipulations of the indexes, the Fed will cut 50 basis points .
this month.
This will further weaken the dollar, forcing up nominal energy costs, and anything else that is imported. and any good that can be exported.
Every third world country has perssistent inflation, the poorer the country , the more reckless the central bank. Zimbabway is being taken back to the stone age by infalation. This is the natural end game of all fiat based currencies , including our own Continental. However in the case of the Continental, most of the population could survive in a non cash economy.
It is more than subprirme that is melting down. The entire structure of debt, built under the assumptions engendered by 28 years of bboom are coming unwound. The commercial paper market is locked up.
The ECB did an emergency injection of newly printed Euros of 500 billion e. Thats over a thousand dollars for each and every person in just one market action on one day.
By some estimates, the Bank of England will have to print 10,000 dollars per person in england to save Northern Rock bank.
Gold is beginning to rock as the smart money starts looking for a place to hide from the twin flations.
The goverrment is jjust one small part of the debt picture.
I think shadowstats has the numbers on that.
or do you need some human examples...
There was an elderly woman in my blind support group at the lighthouse who had to sell her condo because the condo fees grew to be larger than her once generous pension.
Or take a stroll North from South Beach leavingt the beautiful young hardbodies behind and go into the decrepid highrises of Miami Beach. The under indexing of infalation , and the real infalation has reduced many to Dickensonian poverty.
It's drab, moldy, and smelly. That is the smell of inflation destroying a lifetime of working and saving..