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Isn't a little inflation a good thing?

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posted on Oct, 20 2009 @ 09:10 PM
If a bunch of people are in debt (and the US government), wouldn't a small amount of inflation help ease the debt?

posted on Oct, 20 2009 @ 09:21 PM
reply to post by Kaytagg

Well this all depends. If there is inflation and you do not get a raise then you are worse off. If there is inflation and you get a raise that is equal to or greater than inflation after taxes and other things have been stripped from your wages then it could be good. This is only good though if you learn to spend less than or equal to what you earn going forward.

posted on Oct, 20 2009 @ 09:35 PM

Originally posted by Kaytagg
If a bunch of people are in debt (and the US government), wouldn't a small amount of inflation help ease the debt?

A LITTLE BIT? Ya got to be kidding!

A dollar today, 2009, now buys about 3.5 cents, compared to the dollar in 1913 -- how on Earth can you call that a "little bit"?

In other words, a dollar today now buys .035% as much as it did back then.

Three and a half pennies on the dollar.

So let's say that you held some FRNs -- 100 of those 1-dollar bills from the 1920s (ignoring the collector's value of those now-rare notes) -- and you were to spend that 100 dollars on gold today, you would get about 1/10th of an ounce of gold today; back then, you would have gotten 4 ounces of gold with that same money.

1/10th of an ounce of gold vs. 4 ounces of gold today.

And if you spent the old 100 dollars on 4 ounces of gold back then, those 4 ounces of gold today would be worth $4,200! BIG DIFFERENCE!

[edit on 20-10-2009 by Historical-Mozart]

posted on Oct, 20 2009 @ 09:44 PM
Inflation makes you spend your money. Unless you can make interest that outpaces inflation the value of your money dissipates. I believe in the past 10 years alone the value of the US dollar has gone down 75%. It is hard to measure inflation though. You cannot compare it to other currencies(which are manipulated by inflation). You have to compare it to all items of value. Like if only compared to Property, real estate for the last 20 years has been so manipulated that is why it has crashed in value. Food is a good indicator. I know 10 years ago I could pick up a pound of bacon(I love bacon) for $1.99. Yesterday at the market the cheapest was at $6.79. That is an increase of 341% or in inflationary terms, for a dollar loss in value of 71 %. I believe I did that math right.

Now the funny thing is that you have to take into account wages. Now I know for a fact that wages have actually declined in Dollars. Over abundance of workers and the outsourcing of jobs. All here in the US, I believe, to be part of the plan.

It actually may be worse than what I thought when I put it into these terms.

And what is OUR governments solution. Well, we need to outsource more jobs and increase taxes. This is why I think they are trying to foment revolution so they can crush us all.

posted on Oct, 20 2009 @ 10:36 PM
OP - yes - you are entirely correct.

Inflation - or devaluing the dollar is exactly what is needed to get the US moving. The Us is stuck in a deflationary spiral.

It is difficult to break the deflationary spiral - it can be done in a couple of ways.

1. Devalue the dollar

2. Government spending (causing devaluing of the dollar)

Probably the second option is better.

The Fed does not want to do this - they want deflation because it is sending the middle class bankrupt - as they default on the mortgages, these are bought up by the Fed (a private bank belonging to the NWO.

They are stealing all America's real estate - at bargain basement prices.

The problem though - regarding spending is this.

Due to the way the fiat money system works - it must have growth to sustain interest payments on past debt. This means that credit (and therefore debt) growth are exponential functions.

The function is now approaching its theoretical limit - in other words, the rate of debt growth required to meet past interest payments is almost vertical - requiring near infinite expansion of debt.

This is obviously impossible - therefore the monetary system MUST fail - and soon - what time frame? Who knows - soon is all I can say.

I think it will be played this way - the NWO will hold in a deflationary process - until major commercial real estate begins to default. Major banks will cry for money again - the Fed will take over the real estate (theft), injecting liquidity back into the banks (fraud).

They will continue to hold until there is blood on the streets - until people are trying to kill bankers and actually attacking congress etc. They might hold this pattern for another year or more. Commodities will keep going up - assets of other classes will go down - at some point along the way, the stock market will be crashed again.

Then they will devalue the dollar - sending the entire world into a spin. Then they will announce the rescue plan (might be a couple years from now) - a new currency, and consolidation of NAFTA.

EDIT: The alternative is to kick them out - replace dollars with gold and silver - and rewrite everything.

I keep repeating my list of what needs to be done - but have a look at my sig for a link of things the NWO are responsible for, and what needs changing - I agree with it - itys fairly comprehensive.

[edit on 20-10-2009 by Amagnon]

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