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To: research1234 who wrote (145022)2/11/2011 8:40:27 PM
From: russet4 Recommendations  Read Replies (4) | Respond to of 206358
 
The standard of living has increased for some. Exponentially only for the rich. What about the other 5 billion or so humans living on earth.

And perhaps the chart below tells you what's happening to the lower segment of US society. Hundreds of billions are been borrowed, or perhaps we should say are being created out of thin air, to protect the growing underprivileged. And of course the privileged few are screaming to end such entitlements.




To: research1234 who wrote (145022)2/11/2011 9:49:59 PM
From: Jacob Snyder  Respond to of 206358
 
<modest inflation is at worst benign>

If you look at the rate of economic growth, versus the rate of inflation/deflation, for many countries for many years, a clear pattern emerges:

1. small inflation or small deflation correlates with steady economic growth
2. large inflation or large deflation correlates with economic contraction, or, in some cases, collapse

This makes sense because, with small changes in the currency's value, decision-makers grow more confident about the future, and are able to make rational decisions.

On the other hand, large abrupt changes in a currency's value makes the future unpredictable, capricious, and leads to a "siege mentality" among decision-makers. Fear and panic overwhelm rational thought.