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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (97115)	7/31/2002 5:19:04 PM
From: Oblomov	Read Replies (1) \| Respond to of 132070

As a saver and holder of cash, and one who rationally avoids debt (based on my knowledge of 3,000 years of economic history), I prefer deflation to inflation. The economic distortions produced by inflation conflict with my sense of justice. Bad investments and reckless accumulation of debt are forgiven by the rising inflationary tide - a rising tide that raises the leaky boats as much as the seaworthy ones. I am a net producer of goods and services, not a net consumer. An inflationary environment does not create rewards that I consider optimal. At the same time, severe deflation results in compression in the structure of prices across the value chain. It causes the economy to locally "seize up" due to oversupply at the market price. This is the converse of severe inflation, but is equally undesirable. I prefer mild deflation (on the order of -1% to -2% year-over-year change in the CPI-U), similar to what prevailed during most of the 19th century. My own aversion to inflation is not the result of fear, and is not irrational. If it happens, I am confident that I will be prepared for it.