Comments on: Inflate, Will Ya?

By: Canada Dave

Canada Dave — Tue, 03 Feb 2009 19:47:31 +0000

I think that inflation down the road is unavoidable. Perhaps you could do an article on good and bad investments in a strong inflation period, especially what to dump prior to the start (e.g. long bonds, preferred shares).

I am a first time poster but have been reading you every day for the last year. Great insight.

By: fatbear

fatbear — Tue, 03 Feb 2009 18:47:40 +0000

You are aware that Jon Stewart proposed exactly the same thing last week (to Gwen Ifill, who looked at him like he was Zaphod Beeblebrox) – welcome to sanity

As to Soc Sec Trust fund, raise the FICA limit to $1M – after all, it was the Republicans who got us into this mess

By: chas

chas — Tue, 03 Feb 2009 00:56:11 +0000

I’m so disappointed at you, Aleph. In the past, your writing reflected your intelligence. Now, you are so full of Keynesian crap and contradictions–they dare call’em “paradoxes” (“Inflate, will ya”) that you sure sound as moronic as that Krugman alchemist (OK, he got that “Nobel” from the Swedish Central Bank… Alfred Nobel never left money for a prize in Economics. So, what else do you expect from a “central planner”).

By: rdg

rdg — Mon, 02 Feb 2009 14:18:34 +0000

it would blow quite a huge hole in the social security trust fund

By: Stevie b.

Stevie b. — Mon, 02 Feb 2009 08:55:28 +0000

“(Of course, with harm to those on fixed incomes.)”

Just tossed in there as a casual aside and in brackets even!

By: Nick

Nick — Mon, 02 Feb 2009 08:27:49 +0000

http://video.google.com/videoplay?docid=2628364722825076205&ei=zqyGSf7eLozuqAOctJD1Cg&q=Inflation+Is+Good&hl=en

The Idea that the Dollar is a “Store of Value” is a joke. It’s good in exchange. And the more people with cash on hand are forced to perform wealth maintenance by investing, the better

Inflation is good. Let’s face it everyone from the dude that lives at the park in his truck because has renting out his 800K McMansion to the US Government is in debt, let’s give them a little break at expense to China and our debt holding friends.

By: matt

matt — Mon, 02 Feb 2009 01:44:50 +0000

When the TARP was announced, I cringed because the “trickle-down” undertones that tend to trickle down only to the people at the top who have the largest nets.

My counter-proposal was that if the government was going to deficit spend it’s way out of this, it should try a “trickle-up” approach for a change, mailing everyone a big check. The money always ends up in the same spot anyway–principal and interest on loans used to buy stuff. So, the corporations and banks end up with the money. It helps their balance sheets and income statements, and Americans’ balance sheets with the cost shouldered by savers and fixed income.

It’s amazing that these politicians’ solution to everything is to send money to corporations and give them tax breaks while encouraging Americans to leverage. I can’t think of a better way to compress the spring of volatility.

By: ukituki

ukituki — Mon, 02 Feb 2009 01:24:10 +0000

>>Inflation would cheapen the dollar, making imports more expensive and exports cheaper, stimulating the US economy.

True, do you also take into account the fact that US economy is more net importer so it’s in the best interest of most companies to be able to buy more for 1 dollar?

Is there any rule suggesting how to recognize the point at which you should leave the “inflation train” and go back to the ‘monetary policy 101′. In other words, how to prevent your country from repeating the latest history of Zimbabwe, where hyperinflation completely destroyed the local currency?

By: But What do I Know?

But What do I Know? — Sun, 01 Feb 2009 17:34:17 +0000

Long-time reader (here and at Real Money) but first time commenter. I think you’ve hit the nail on the head–it is easy to send everyone a check to provide “stimulus” to the economy. I’m not saying it would work, but it would be quick and easy and (I think this is important) repeatable. It would also be profoundly democratic with a small “d”, which is probably one of the aspects which will slow or prevent its adoption by the Powers that Be. Once the average person realizes that the government can just send them money they will want it done more and more often.

Also, since the US dollar is the de facto world currency, what about sending everyone in the world some? It’s not as crazy as you think; after all, our foreign creditors will need some compensation for the devaluation of their dollar holdings.

Anyway, I love insightful comments and fairly unique perspective. Thanks.