re: #325 Ward Cleaver

In a big way.

Probably.re: #308 Kenneth

The whole point is that by intentionally following a pro-inflation policy, the Obama admin will be “taxing” our savings. Inflation is a mechanism whereby the value of your cash diminishes as a mean to pay off the real value of debt owed by the gov’t. In effect, our savings are taxed by the effect of inflation.

Inflation is coming.

Probably. But there are an awful lot of deflationary pressures at work in the marketplace these days, from collapsing home prices to high unemployment through loss of savings. All of these are conspiring to drive prices downward.

A spike in energy costs would tend to work against those pressures, and we may see one this summer as China resumes it’s nationwide highway construction and OPEC attempts to restrict supply. But the ongoing, massive printing of money, which typically boosts inflation by devaluing currency, won’t have much of an effect as long as demand for goods remains low.