Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Haim R. Branisteanu who wrote (72311)	2/1/2010 2:56:31 PM
From: Maurice Winn	1 Recommendation Read Replies (1) of 74559

Financial relativity theory allows for two ways to do the job of cutting government spiv pay. One is to tell them "Your pay is being halved from today". Another is to halve the size of the bank notes they get by pixelating a whole lot more of the money, so they get paid "the same" pay rate, but what they can buy for the money is half because of inflation. That can be a sneaky process because with house prices down and going down more, the government spivs have had effectively a pay increase = they can go shopping for houses at bargain prices. By halving the size of the bank notes [figuratively by printing twice as many as existed, I don't mean actually making smaller pieces of paper, which is actually plastic] inflation is concealed in that house prices stay the same, which doesn't look like inflation, government spivs get the same pay and the producer of the money gets to spend all that extra loot they have just pixelated. Hey presto, that's just what they have been doing. As Big Ben has said for years - he can load helicopters and bury everyone in money and thereby avoid deflation. Mqurice

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