lance sjogren

Let's Just Say It: Print More Money

Another reason inflation provides the prospect of an orderly lowering of the standard of living in the US. (which I have pointed out is inevitable)

With high unemployment, wages are not going to go up much over the coming years.

Thus, in the face of substantial inflation, real wages are going to decline in the coming years.

That is unfortunate for the wage earner, but the point is to object to it is like objecting to the sun coming up in the morning. It is an inevitability.

Inflation is the best solution for an orderly downsizing of the United States of America.


One other point: Forget about the US remaining the world's superpower. As we become an economy more on the scale of Indonesia or France, we will no longer be able to sustain a superpower level of military power. Unless we can establish a new role of the US as the "soldier of fortune" to the world. That would mean that we would no longer be spending vast sums of our own money for military ventures that the rest of the world doesn't want us to be involved in. It would mean we would shut down our military involvement around the world, and tell countries that we are happy to sell security services to them.

Face it, that is about the only thing the US is still good at, military. It is ridiculous for an economic basket case to be going out spending our own money on deploying those resource, especially when no one else in the world supports what we are doing.

But, the fact is we have been the glue that has kept the world from breaking up into regional wars all over the place. I wouldn't be surprised if many countries in the world, after discovering what a precarious situation they are after we pull back from military involvement around the world, decide it is worth it to hire us to provide them security services.

Lots of details to work out of course, like which governments would we refuse to work for on account of their human rights record or whatever.

(most likely, as the US economy deteriorates further, public opinion will say- hey I don't care if it's Idi Amin, anyone who is willing to pay us, let's work for them and provide some jobs for US soldiers.

Let's Just Say It: Print More Money

Glen:

Inflation will help solve the social security and medicare problems.

The spending on those programs goes up, but if inflation is high the spending will not go up as fast as inflation.

(keep in mind that the way the govt now calculates inflation gives inflation figures that substantially understate actual inflation)

Thus, with a high inflation level, real spending on programs on Medicare and Social Security will go down. Of course, that will mean that the medical services received by Medicare recipients will decline, and the real spending power of social security checks will diminish.

But so what? Because of the hole the US has dug itself into economically, there is NO SOLUTION that will not lead to a declining standard of living.

Inflation seems like the most obvious way to implement that economic decline in an orderly manner, since government clearly lacks the ability to make hard choices in cutting less justifiable programs in order to keep its higher priority programs intact.


INFLATION IS THE ANSWER.

Let's Just Say It: Print More Money

Count me in. Let's go for the hyperinflation solution.

My gold and silver stocks should do well.


What will be the long-term effect on the economy? Probably some good and some bad. The fact is, the US is in debt beyond its ability to ever repay.

There are two choices, chapter 11 for the United States of America, or inflate until our debt is diluted to a manageable level.

Our creditors may not like the inflation solution, but they should appreciate the fact that they are better off getting some of their money back that have the US go into default, such that the creditors lose everything.

As they say, if you are a small debtor having a hard time paying your debts, you are in trouble. If you are a big debtor having a hard time paying your debts, the bank is in trouble.

The US is the biggest debtor ever. You can't squeeze blood out of a turnip. Inflate or default. Those are the only options.