Comments on: Inflation: The strategy that dare not state its name http://www.creditwritedowns.com/2009/05/inflation-the-strategy-that-dare-not-state-its-name.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: sobers http://www.creditwritedowns.com/2009/05/inflation-the-strategy-that-dare-not-state-its-name.html/comment-page-1#comment-5195 sobers Sat, 09 May 2009 11:17:55 +0000 http://www.creditwritedowns.com/?p=8492#comment-5195 There are 3 exit strategies from such a huge amount of debt:<br><br>1 - the hair shirt approach - low inflation, low growth, cuts in public spending, tax rises, pay back the debt slowly with decades of grinding hard work.<br>2 - Default completely on your debts.<br>3 - Use inflation to reduce the real value of your debts, to a greater or lesser extent.<br><br>Which do you think is most likely in a liberal democracy?<br><br> Not a hard choice IMHO! There are 3 exit strategies from such a huge amount of debt:

1 – the hair shirt approach – low inflation, low growth, cuts in public spending, tax rises, pay back the debt slowly with decades of grinding hard work.
2 – Default completely on your debts.
3 – Use inflation to reduce the real value of your debts, to a greater or lesser extent.

Which do you think is most likely in a liberal democracy?

Not a hard choice IMHO!

]]>