Funny how few people realize that. Some congressman can promise them a handout and they will vote for him. They just can't seem to realize that handout will not buy what it bought yesterday. Not only that, their kids will have to pay it back someday. The European governments are well aware of inflation. That is the only mandate their central bank has. They have lived through the days when it took a wheelbarrow full of money to buy a loaf of bread. Here in the US we had terrible inflation in the 1970's, but it was only a few years and now everyone has forgotten. I still remember trying to buy my first home with 18% interest. Those numbers don't work.
----- Original Message ----- From: "Ricardo Aráoz" <[EMAIL PROTECTED]> To: "ProFox Email List" <[email protected]> Sent: Friday, November 28, 2008 2:47 PM Subject: Re: [OT] How to determine if a market has hit THE bottom. Nicholas Geti wrote: > Governments can never go bankrupt. They just print more money. Besides which we should correct a concept here. If govt. prints money (inflation) it is not the rich who'll pay the party, they will certainly not have their money in cash, and what they have they will convert fast. It is the poor bloke who'll pay, 100% of what he earns will be paying the inflation tax (yes, it is a tax) while maybe only 5% of what a rich bloke makes will pay that tax (same as what happens with VAT). _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
