Comments on: Inflation: Good for Government, but Bad for You http://blog.canadian-dream-free-at-45.com/2009/01/20/inflation-good-for-government-but-bad-for-you/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: sindbad http://blog.canadian-dream-free-at-45.com/2009/01/20/inflation-good-for-government-but-bad-for-you/comment-page-1/#comment-19096 sindbad Fri, 23 Jan 2009 17:17:03 +0000 http://blog.canadian-dream-free-at-45.com/?p=605#comment-19096 i appreciate the logic behind your theory ,but you neglected the most important ingredient in an economy ,trust ,without it our money is just pieces of papers with ink ,but the main reason money is useful because it is a the yardstick for trading services and goods ,and since these are real materials ,inflation can not destroy the economy for long ,because eventually balance will be restored and growth comes again ,not from inflation but because the population growth and new inventions. the government is right to expand the money supply ,otherwise people will be happy to stuff useless papers in their mattresses ,waiting for the value go up for no reason but scarcity . inflation is why anyone invest in the economy or sacrifice value ,a choice is forced on you . i appreciate the logic behind your theory ,but you neglected the most important ingredient in an economy ,trust ,without it our money is just pieces of papers with ink ,but the main reason money is useful because it is a the yardstick for trading services and goods ,and since these are real materials ,inflation can not destroy the economy for long ,because eventually balance will be restored and growth comes again ,not from inflation but because the population growth and new inventions.
the government is right to expand the money supply ,otherwise people will be happy to stuff useless papers in their mattresses ,waiting for the value go up for no reason but scarcity .
inflation is why anyone invest in the economy or sacrifice value ,a choice is forced on you .

]]> By: Free Online Backups and Weekend Reading | Million Dollar Journey http://blog.canadian-dream-free-at-45.com/2009/01/20/inflation-good-for-government-but-bad-for-you/comment-page-1/#comment-19089 Free Online Backups and Weekend Reading | Million Dollar Journey Fri, 23 Jan 2009 12:22:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=605#comment-19089 [...] Canadian Dream writes about how inflation is good for the government but bad for you. [...] [...] Canadian Dream writes about how inflation is good for the government but bad for you. [...]

]]> By: Goal Hunter http://blog.canadian-dream-free-at-45.com/2009/01/20/inflation-good-for-government-but-bad-for-you/comment-page-1/#comment-18941 Goal Hunter Tue, 20 Jan 2009 14:44:36 +0000 http://blog.canadian-dream-free-at-45.com/?p=605#comment-18941 I love these kind of economic theory posts, keep it up. It tests our understanding and lets us indulge in the games that the big boys play. Please don't mind me if I pose views to the contrary! I really should read the book but I'm going by your summaries. One thing Crashproof seems to be saying is that inflation is bad. However, I don't understand how we can ever avoid inflation. Perhaps he means that inflation should be low, especially relative to other countries? That definitely makes sense. Second, I can't believe that the government "prints money". Can you define printing money? Increasing money supply happens through bank loans or so I believe in modern economies. I would be very surprised if new money is ever issued by the government. Third, doesn't everyone know about inflation? Every time the annual raise cycle comes by my co-workers and I are always complaining that we're no further ahead compared to last year cuz inflation ate our raise :) I love these kind of economic theory posts, keep it up. It tests our understanding and lets us indulge in the games that the big boys play. Please don’t mind me if I pose views to the contrary!

I really should read the book but I’m going by your summaries.

One thing Crashproof seems to be saying is that inflation is bad. However, I don’t understand how we can ever avoid inflation. Perhaps he means that inflation should be low, especially relative to other countries? That definitely makes sense.

Second, I can’t believe that the government “prints money”. Can you define printing money? Increasing money supply happens through bank loans or so I believe in modern economies. I would be very surprised if new money is ever issued by the government.

Third, doesn’t everyone know about inflation? Every time the annual raise cycle comes by my co-workers and I are always complaining that we’re no further ahead compared to last year cuz inflation ate our raise :)

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