Quote:
Originally Posted by Swish
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That, plus every time the Federal Reserve (or other other equivalent) prints money it attaches a small extra amount to each dollar (not quite $1.01, but more than $1)... so the debt cycle isn't breakable, there'll always be more debt than people can pay off. If everyone paid off all their debts across the world, the world would still be in debt.
More here if interested... its pretty dry stuff though :/ |
I'm not sure that's quite right: normally inflation
helps people with debts, and hurts debtors.
Let's say I borrow a buck from you, and then the Fed makes a bunch of money, inflating the economy and making the real value of a buck $0.99. Now I pay you back that buck, but as I just said it's really only worth $0.99. I as debtor got $1 of real value from you, but I only had to pay you back $0.99 of real value.
Now don't get me wrong, I'm no fan of the Fed, but based on my radical left-wing highschool history teacher's explanation of things I do believe printing money hurts debtors, not debtees.