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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Oblomov who wrote (75270)	12/11/2006 12:45:07 PM
From: GST	Read Replies (1) \| Respond to of 110194

The poor own nothing. They have no assets. They will pay more for everything. And they will have little or no bargaining power to raise their wages -- please do tell how they will benefit from inflation.

To: Oblomov who wrote (75270)	12/11/2006 12:53:47 PM
From: Mike Johnston	Read Replies (4) \| Respond to of 110194

On the contrary, inflation closes the "divide" between rich and poor. This is exactly why it is so pernicious, because it shrinks the relative rewards for saving, investing, and producing. Wrong ! The largest shifts in wealth occur in high inflation environments. The wealthy benefit from inflation, because they are early receivers of newly created money. The poor are late or non receivers and inflation hits them right in the pocketbook (rising living costs, wages not keeping up) That is why wealth inequality is largest in countries that experience frequent inflation episodes.