Comments on: Is the Fed deliberately allowing inflation http://polizeros.com/2008/07/02/is-the-fed-deliberately-allowing-inflation/ Musings on politics: anti-war, global warming, peak oil and otherwise Tue, 02 Dec 2008 21:21:27 +0000 http://wordpress.org/?v=2.6.1 By: DJ http://polizeros.com/2008/07/02/is-the-fed-deliberately-allowing-inflation/#comment-153726 DJ Sat, 05 Jul 2008 14:25:44 +0000 http://polizeros.com/?p=12057#comment-153726 There is a classic benefit to inflation which makes it a big temptation to the incumbent: it makes it easier to pay back borrowed money. The trillions of dollars borrowed can be repaid with cheaper dollars. As we know from history and common sense, inflation also has a negative impact on the economy. But for those in power, that may not be relevant. There is a classic benefit to inflation which makes it a big temptation to the incumbent: it makes it easier to pay back borrowed money. The trillions of dollars borrowed can be repaid with cheaper dollars.

As we know from history and common sense, inflation also has a negative impact on the economy. But for those in power, that may not be relevant.

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