Inflation is a useless concept until one has a price index and a theory of the price index.
The price hikes since 1980 were all hedges against today, the year of our generational default. They were all perfectly rational attempts to cover the expected claw backs when the millennials discover Euler's error.
They are not all that bad, we had a few years of near hyper inflation right after the gold default, then it trended down. The post default period from 1972 to 1980 was when real inflation happened, horded gold entered the market and took Fed losses.
Partial devaluation is not end of the world, and we expected the millennials get a partial default on federal debt anyway. Make the deal, my four part plan still stands. 1) Cut payroll taxes 2) Cut boomer entitlement 3) raise progressive taxes. 4) default on 30% of our debt over 15 years.
The initial cuts are 3% each group, a sudden stimulus. Then defaults will begin immediately, cover 15 years and be spendable as opportunistic losses by the Fed.
No comments:
Post a Comment