No, I'm not advocating hyper-inflation, but I am saying that it's highly likely that "moderate" inflation will occur. I should clarify and say 'continue' to occur, because as everybody knows gasoline prices, health care costs, college tuition, real estate prices etc. have been increasing 'moderately' for months now. In my mind it boils down to inflation benefitting those heavily in debt (who can make their future interest and principal payments on existing debts with cheaper dollars), where no inflation or deflation benefits the rich who have excess money to loan or invest. Whether this applies to American consumers versus American retirees/rich or whether it applies to the US national debt owed to foreigners versus the Chinese/European central banks as bondholders is only a question of magnitude.Melonie, are you advocating hyperinflation? That will also increase the interest rate we have to pay for the funds and like a bungee cord, those interest rates will throw us into exponitial decay on the deficit. The only way the current deficit works is because of low interest rates.



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