All those who think that budget deficits and weaker dollar is good - please check in here.

[TheCoxwain]

From a macro-economic standpoint..those things are supposed to be bad. Or so we have been told.

A weaker dollar ( through controlled inflation , increased currency supply) will do the following.


Reduces our trade deficits (competitive exports - costlier imports) ( too bad for China/Walmart)
Reduced the individual debt load ( The intrinsic value of the debt - not the dollar amount)
Will help home owners - as inflation will help with increasing home values in dollar terms.
Spur economic activity ( If something is going to cost more dollars tommorow - then you would rather buy it now)

Who will be hurt are the MEGA RICH ...as all their billions in dollar denominated assets will buy them fewer things ( but what do they really need - Another flat screen TV for their pets?)

I think controlled inflation can be used as a strategic weapon to ease the imbalance between the haves and have-nots without resorting to taxes - and I think it is a good thing.

[n2doc]

1. Except wages never keep up

People never have recovered from the inflation spike of the 1970's. Or the under-reporting of inflation in the last few decades.

But I suspect this is the direction we will be taking, as no one has the balls to raise taxes on the rich to cover the deficits.

[forum slut]

8. bingo. This is wealth redistribution in the wrong direction. nt

[Romulox]

2. All I know that is every one of our competitors panic when their currency gains against the $$$

[Statistical]

3. No free lunch.

Likely if we see say 15% inflation over next 3 years wage will go up 7%.

So everything you need to buy goes up 15% and you boss gives you 7% wage.
In "real terms" you just took an 8% paycut and the poor get poorer.

[Turbineguy]

4. In the 1990's we discovered the best way

is to work our way out of it. Make products and provide services that people want and can afford. Playing currency games helps the mega-rich.

[jinto86]

6. So all we need is another internet revolution...

Good luck there.

[Turbineguy]

7. The internet revolution

as a wealth creating tool created by finance wizards, consisted of hype, followed by an initial public offering small enough to create an instant shortage of stock thereby driving up the price. I'm thinking in terms of actual products and actual services.

[Democracyinkind]

5. "Controlled Inflation" is an imperial graveyard. The "control" part is an illusion most of the times