And printing money that is only used to pay off debt is not inflationary.
"And yet it is happening. The Fed keeps creating money, and yet no inflation appears. The lessons we need to learn are those our grandparents knew. Money does not create inflation if every new dollar is used to extinguish debt rather than buy goods and services."
Having/owning things makes people feel good. Young folks, those most likely not to have great paying jobs, want to own things. They go into debt to own things. Things make them feel good.
The part I thought was most interesting was the bit about how rich kids didn't get high off of debt like poor kids did. Maybe the reason they're poor is because they feel empowered by living beyond their means?
3 comments:
And printing money that is only used to pay off debt is not inflationary.
"And yet it is happening. The Fed keeps creating money, and yet no inflation appears. The lessons we need to learn are those our grandparents knew. Money does not create inflation if every new dollar is used to extinguish debt rather than buy goods and services."
According to David Frum, here:
http://www.frumforum.com/learning-inflationary-lesson-our-granparents-knew
So quit worrying.
Hmmm....
Let me see.
Having/owning things makes people feel good.
Young folks, those most likely not to have great paying jobs, want to own things.
They go into debt to own things.
Things make them feel good.
Therefore, debt makes young people feel good.
Yeah, I see the logic.
The part I thought was most interesting was the bit about how rich kids didn't get high off of debt like poor kids did. Maybe the reason they're poor is because they feel empowered by living beyond their means?
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