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 Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: CrisisMaven http://www.creditwritedowns.com/2009/05/inflation-the-strategy-that-dare-not-state-its-name.html#comment-58473 CrisisMaven Thu, 11 Feb 2010 17:59:00 +0000 http://www.creditwritedowns.com/?p=8492#comment-58473 Thanks for the clear words - just quoted some of your piece in my <a href="http://crisismaven.wordpress.com/2010/02/08/bloom-of-doom-v-we-have-control-of-the-ship-we-have-a-plan/" rel="nofollow">"We have control of the ship, we have a plan"</a>. Thanks for the clear words – just quoted some of your piece in my “We have control of the ship, we have a plan”.

]]> By: Sobers http://www.creditwritedowns.com/2009/05/inflation-the-strategy-that-dare-not-state-its-name.html#comment-56393 Sobers Sat, 09 May 2009 10:17:00 +0000 http://www.creditwritedowns.com/?p=8492#comment-56393 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! 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!

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