Debt Rattle October 15 2015
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DPC League Island Navy Yard, Philadelphia. USS Brooklyn spar deck 1898 • The Biggest American Debt Selloff In 15 Years (CNN) • Inequality To Drive ‘Ma
[See the full post at: Debt Rattle October 15 2015]“Deflation exacerbates ‘inequality’ of income, wealth, profits, asset valuations,” Hartnett wrote. “The gap between winners and losers is being driven wider and wider by excess liquidity…
History is interesting, but I don’t think it supports this quote. Unsurprisingly, it supports the exact OPPOSITE of what is reported. Inflation occurs why? Because it helps the little people so much? I don’t think so. It’s because the first holders of money have a distinct advantage over the late-holders of money, who purchase once the inflated money supply push up prices. It also permits insiders to avoid paying for their mistakes by borrowing more, printing more, or having the easy option of bailouts. That’s why it’s in use worldwide: it sharply advances the insiders at the expense of the little people.
So therefore, the opposite of inflation does what? Also hurts the little people and advances the insiders? So a thing and its opposite have the same effect? I don’t think so. All the inflation led to unprecedented *paper* gains and the illusionary/real power that comes with those paper gains. Yes, little people lose in a Deflation, but guess who loses far more when the paper–stocks, bonds, companies, assets–lose 90% of their value in a typical Deflation? That’s right, the poor may lose 10% but the paper-holders lose 90%.
But I doubt this gentleman would want to tell you that, because we all might try it to see what happens, wiping out the stock market…and the income disparity that is so crippling politics and society.
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