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View Diary: There will be no default on the national debt (113 comments)

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  •  we WANT (0+ / 0-)

    inflation right now.

    it gives the Fed more power to help the economy while also helping people get out from under their debt by reducing the real value of that debt.

    •  And wrecking the housing market... (1+ / 0-)
      Recommended by:
      salamanderempress

      ...with skyrocketing interest rates.

      And screwing low-income workers who sure as hell aren't going to get raises.

      And a dozen or so other negative impacts that people haven't considered.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Thu Dec 27, 2012 at 11:21:35 AM PST

      [ Parent ]

      •  nah (0+ / 0-)

        interest rates won't skyrocket until the economy is at or near full employment.  it's simply not a worry for a long time.

        meanwhile, you can't have an inflationary cycle unless wages largely keep up with inflation - otherwise, companies cannot keep charging more and more if people's wages are not going up so that they can buy the products.

        meanwhile, far too many people are buried in debt (housing, student loans, credit card debt, etc).  inflation erodes the real value of that debt (which is why the rich in particular hate inflation, because they are often lenders/investors).

        •  Inflation benefits those with... (0+ / 0-)

          ...first access to money and credit, i.e. the rich.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Thu Dec 27, 2012 at 01:23:05 PM PST

          [ Parent ]

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