Inflation is a dangerous way to get rid of debt burdens
Repost from 6-4-2021
“It has long been understood that price inflation is a form of tax, under which portions of the citizenry’s income and wealth is taken from them through reducing the real buying power of the nominal sums of money held by all those in the private sector and the general public. But, as has also been pointed out many times, while actual taxation is targeted in various ways at defined groups in society, price inflation is indiscriminate in negatively affecting the real incomes earned by various segments of the overall population. It is far more arbitrary and deleterious in its effects on people.”
USAGOLD note: Uncovering the profound and harmful effects of inflation……. It is a dangerous way to get rid of debt burdens, but history is riddled with instances of nation-states taking that route to the ultimate detriment of their savers and investors.