myths, page-4

Enjoyed that, thanks thorburn - I like his comment about inflation being the tax you do not vote for.

Is it inevitable, that, if the gov spends above its tax income, that the difference must be born by the people, through inflation, or the devaluation of their wages and savings?

- I know this is a very simple concept to be asking about, but if people vote against reduced social spending and vote against increased taxes, and if security spending and other non-voted upon expenses remain high, is there any other choice apart from inflation?

Menta

I think your right, the deflation of over-valued assets,feels like an inevitable force of nature. Interesting to watch the Central Banks trying to fight this, I wonder how it will play out.

Could we end up with the collapse of institutions holding bad "assets", and see inflation in essential consumables at the same time?

In which case, some hard assets will do well, and others will not.

http://www.youtube.com/watch?v=6eiA2antrYg&feature=player_embedded

above sounds like a fair discussion about banks on-book bad assets.