Who Is Paul Krugman Kidding? Inflation Is Morally Abhorrent – Forbes

The dollar provides a store of value. Krugman is cavalierly encouraging Bernanke to punish savers. Making debts less painful through deceit appears propitious on Princeton’s blackboard, but the real world tells another side to this story. Every borrower requires a saver. Unless Krugman thinks debt more important than the savings furnished making credit feasible, inflation fails. The profligate may flourish, but inflation plunders the frugal.

Corporations want worthwhile investments more than does Krugman. Their cash idles due to dim prospects given what Robert Higgs calls “regime uncertainty.” Inflation will pilfer corporate savings forcing action, but firms aren’t expanding domestically in part because of Washington’s blunderis. Inflationary threats instigate investor hesitation; as do looming tax hikes and reams of regulatory gibberish.

Quantitative easing may enrich Wall Street, which buys treasuries before selling to the Fed for risk-free returns, but it repels the capital necessary for growth. Main Street suffers from Washington’s wicked monetary schemes. Inflation represents an insidious tax which rather than confiscate your cash, invisibly pinches its value to lessen government’s colossal borrowings.Inflation backfires because savers instead hedge into land or precious metals.

Who Is Paul Krugman Kidding? Inflation Is Morally Abhorrent – Forbes.


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