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To: big-papi who wrote (88477)	3/27/2012 2:35:54 PM
From: Maurice Winn	1 Recommendation Respond to of 218105

You are right: < That leaves us with inflating the system, which in my estimation seems to be the most logical path we are taking given the Fed's monetary and fiscal policies. > I learned from the late 1960s that the law of governments is to rob people of their money by way of inflation. That lesson had sunk in solidly by the end of the 1970s. It's the fundamental fact of financial relativity theory. You can bet the farm on it. Mqurice

To: big-papi who wrote (88477)	8/15/2012 7:19:02 AM
From: elmatador	Respond to of 218105

No inflating the system. There is a more benign way to do it than through inflation. “It seems to be taken for granted now that central bank policies have implicitly underwritten a period of financial repression by artificially suppressing returns,” Deutsche Bank said. “For the issuer this is the mirror image of the benefit in terms of lower borrowing costs.” ... If financial repression is achieved through inflation, the costs are much higher since they will reflect reduced real returns of all outstanding debt rather than reduced returns on debt instruments held to maturity,” Deutsche Bank said. “In this context financial repression through depressed yields is considerably more benign than through inflation.” businessweek.com