>From David:
> It has long been my belief that the government uses inflation to > pay off the debts that are incurred. This is a great way to take > away assets from those who hold them in the form of cash equivalents. > The recent actions of the FED will result in dangerous inflation so > now is a good time to borrow as much as you can at low fixed rates > for the longest period possible. I saw a reference that suggested > that a 30 year home mortgage rate is 3.36%; what a deal. I am in agreement... However, I suspect governments have no choice left in their arsenal but to eventually print up extra greenbacks and start another uncomfortable cycle of higher-than-normal inflation. It is the only way I know how governments can rebalance their books and pay off the previous administration's predilections to instigate expensive and unnecessary wars. If the rich and powerful refuse to pay taxes, inflation is the only practical economic method left that I know of on how governments can redistribute wealth back to the needy which has been systematically sapped by the rich and powerful. The horribly bad thing about inflation is that it takes a terrible toll on individuals with fixed income incomes, like retirees and the disabled. Hopefully the government can compensate them. The rich and powerful will of course rail against such policies and point out how it will ravage the bank accounts of the poor and their meager. The rich and powerful will do their best to frighten the bejesus out of everyone especially the poor, which the Tea Party seems to be doing quite well these days. But what most of the rich and powerful are not saying, and what they are really scared about is the fact that it's their OWN damned money, their OWN power base, that they are really worried about losing. However, they are rich. They are still powerful. They can afford it. They just don't want to afford it, not if they can help it. The problem is that the poor can't afford it, unless the government compensates them. But for government to compensate the poor, the rich and powerful will have to realize the fact that it's their own wealth that is being reduced - and they won't stand for it, not if they can help it. It's a vicious cycle. Hopefully, an administration with enough guts will prevail and help redistribute the nation's wealth back to a more economically healthy levels. The current levels. the current economic distribution is horribly out of skew. BTW, home mortgages are now at all time lows: 2.75% I've personally never experienced rates this low in my life. I've heard they may stay this low for possibly another year or so. This is the time to refinance. We just did. helping to redistributing "wealth" one household at a time. ;-) Regards, Steven Vincent Johnson www.OrionWorks.com www.zazzle.com/orionworks
