Comments on: The Most Important Financial Question You Must Ask

By: Five Steps To Freedom » Blog Archive » A Cry for Inflation AND Deflation… Are These People Crazy?

Mon, 14 Sep 2009 16:00:35 +0000

[...] want: inflation in their income and deflation in their expenses. (Allow me to diverge from the proper definition of inflation in this post; Here I’m talking about price [...]

By: Jeff Nabers

Jeff Nabers — Tue, 14 Jul 2009 19:31:23 +0000

@Matt – I contend that economic theories are disproven when actual events happen that are contrary to the theory… especially when other theories exist that are substantiated by actual events over and over again.

@Ibeg – Cheapening debt encourages borrowing. Look what happens when borrowing is artificially encouraged. I wouldn’t consider destroying the economy to be a benefit of inflation.

By: Ibeg Todiffer

Ibeg Todiffer — Sat, 27 Jun 2009 14:44:23 +0000

Another important benefit of inflation is that it cheapens debt. This is the economic equivalent of absolution for one’s sins. It is why current deficit spending need not burden our grandchildren, who will be able to make the payments on our debt with their chump change.

Jeff, you write of “false values” but there is no reference point somewhere by which “true values” may be determined. If there were, stock market activity would graph as a flat-line (or perhaps a square wave) since no “price discovery” would be necessary.

By: Matt

Matt — Fri, 26 Jun 2009 21:09:21 +0000

Jeff:
Regarding your third paragraph, your argument is equivalent to: “People that believe in evolution were unable to predict our current financial problems. Therefore evolution must be wrong.” The validity of the theory I stated is in no way compromised because believers in said theory were unable to predict a severe economic downturn caused by a housing bubble, overleveraging, and financial engineering on wall street.

I will check out the website when I get a chance. I’m always up for expanding my knowledge in the area.