Comments on: S.F. Fed chief Yellen tells inflationistas to pipe down http://www.creditwritedowns.com/2009/07/s-f-fed-chief-yellen-tells-inflationistas-to-pipe-down.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Sobers http://www.creditwritedowns.com/2009/07/s-f-fed-chief-yellen-tells-inflationistas-to-pipe-down.html#comment-56668 Sobers Wed, 01 Jul 2009 21:57:00 +0000 http://www.creditwritedowns.com/2009/07/s-f-fed-chief-yellen-tells-inflationistas-to-pipe-down.html#comment-56668 Politicians of all nations have devalued their currencies ever since they forced them off the gold standard. Inflation has stolen people's savings for the last 50-60 years. Would you like to have lent the government money 25 years ago, and be getting your capital back now, worth probably less than half it was then? Fancy a punt at what you'd get back in real terms if you bought 25 year government bonds right now? The government is up to its neck in debt (in both UK & USA), and can print its own money. What's the most likely outcome? Ask Janet Yellen if she'll accept a 2% pay rise each year for the next 25 years and see what she says then. Better still, if she's so sure about deflation, keep the same pay, no rise at all. Let her put her money (or rather the taxpayers money) where her mouth is. Politicians of all nations have devalued their currencies ever since they forced them off the gold standard. Inflation has stolen people’s savings for the last 50-60 years. Would you like to have lent the government money 25 years ago, and be getting your capital back now, worth probably less than half it was then? Fancy a punt at what you’d get back in real terms if you bought 25 year government bonds right now?

The government is up to its neck in debt (in both UK & USA), and can print its own money. What’s the most likely outcome?

Ask Janet Yellen if she’ll accept a 2% pay rise each year for the next 25 years and see what she says then. Better still, if she’s so sure about deflation, keep the same pay, no rise at all. Let her put her money (or rather the taxpayers money) where her mouth is.

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