Skip to main content

View Diary: A Tea Partier Just Called Me "Communist." Watch My SLAM DUNK Response (205 comments)

Comment Preferences

  •  No, modest inflation of 2-3% means that (9+ / 0-)

    a 401(k) can hold its own against inflation. More importantly it forces cash out of stocked up wealth back into the economy by making hoarding of wealth a losing venture. With inflation of 3% it would take almost 25 years to halve the value of a fixed asset with no rate of return.

    "What profit a man, if he gain the world, but has to pay taxes on it?" Paul 8:36

    From the Gospel of St. Ron Paul in the Teachings and Misunderstandings of the Words of Adam Smith

    by ontheleftcoast on Thu Apr 12, 2012 at 06:26:43 PM PDT

    [ Parent ]

    •  I was being glib about the ol' 401k (1+ / 0-)
      Recommended by:

      More to the point ... tens of million American's don't even have a 401k adequate for their retirement. I'd venture the distinct majority do not. Or in my case, I have a moderate portfolio but not enough to last my entire retirement ... not if my investments just keep up with inflation.

      Considering the just during Bush's terms, the US Dollar went from about 50% stronger than the Canadian dollar to parity, inflation more than 2-3% seems plausible. Especially once the Chinese Yuan is allowed float. If oil is ever traded in something than US dollars, that is going to ruin a lot of retirements.

      My point is, to claim the only people with genuine fears about inflation are the hyper-wealthy is a comment guaranteed to be offensive to many many readers.

      •  High inflation, yes. (0+ / 0-)

        Modest inflation, no. In fact most readers here, in fact most Americans, benefit from modest inflation. Since most Americans carry debt (often giving them negative net worths), inflation erodes the value of that debt away. True, wages need to increase against the inflation and that hasn't happened. But traditionally it has because wealth was willing to put money into the system. We're in a bizarro world now where wealth sees it as more profitable to sit on trillions of dollars and starve the economy despite the fact there has been inflation.

        All my sig lines are hand-crafted by demented elves living in my skull.

        by ontheleftcoast on Fri Apr 13, 2012 at 09:57:24 AM PDT

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site