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Their politicians are so stupid. Can't believe your politicians are pandering to the Tea Party- the vocal minority.

The Tea Party consider themselves as the silent majority representatives, but in the end, they arenothing but a small, vocal minority supported and owned by corporations wanting to put interest of profits over scientific truth.

Astroturf can be used for good, but it can also be used for evil ends of denying climate change. Therefore, due to the high debt America has, it went down to AA+. Meanwhile, Australia enjoys AAA ratings. Ha ha ha.

(Astroturfing for non-Americans: opposite of grassroots)

At 8/10/11 06:43 PM, Der-Lowe wrote:

How can you execute the mortgage of a worthless home? Inflation would avoid the costly rewriting of contracts, and reduce real debt burden. People would be able to pay back their mortgages, and getting some money back is better than getting zero (the real figures are 40% of the real value) from the point of view of the banks. Since your accounting is in historical terms, the income reports of bank won't look too bad either.

Everyone is better off

Or you could just impose a cross-the-board sales tax and give the proceeds to foolish borrowers [and ultimately foolish lenders], is the effect not the same?

At 8/12/11 11:33 AM, SmilezRoyale wrote: Or you could just impose a cross-the-board sales tax and give the proceeds to foolish borrowers [and ultimately foolish lenders], is the effect not the same?

It's the same, but it's way easier to generate inflation than to get the majority to make a new tax, and then give money back to lenders. And inflation's more subtle, it won't make the point of borrow all you want, the State will pay you back.

At 8/13/11 08:30 PM, Der-Lowe wrote:

At 8/12/11 11:33 AM, SmilezRoyale wrote: Or you could just impose a cross-the-board sales tax and give the proceeds to foolish borrowers [and ultimately foolish lenders], is the effect not the same?

It's the same, but it's way easier to generate inflation than to get the majority to make a new tax, and then give money back to lenders. And inflation's more subtle, it won't make the point of borrow all you want, the State will pay you back.

I said that more to point out that there *are* victims in this plan of yours. You made it sound as if that wasn't the case with your inflation scheme.

At 8/13/11 08:43 PM, SmilezRoyale wrote: I said that more to point out that there *are* victims in this plan of yours. You made it sound as if that wasn't the case with your inflation scheme.

I fail to see them really, apart from a temporal mismatch in relative prices coming from inflation. Elaborate please?

At 8/15/11 09:53 PM, Der-Lowe wrote:

At 8/13/11 08:43 PM, SmilezRoyale wrote: I said that more to point out that there *are* victims in this plan of yours. You made it sound as if that wasn't the case with your inflation scheme.

I fail to see them really, apart from a temporal mismatch in relative prices coming from inflation. Elaborate please?

The people paying the consumption tax?

At 8/15/11 10:04 PM, SmilezRoyale wrote:

At 8/15/11 09:53 PM, Der-Lowe wrote:

At 8/13/11 08:43 PM, SmilezRoyale wrote: I said that more to point out that there *are* victims in this plan of yours. You made it sound as if that wasn't the case with your inflation scheme.

I fail to see them really, apart from a temporal mismatch in relative prices coming from inflation. Elaborate please?

The people paying the consumption tax?

But that was on the non-inflationary scenario :/ In the inflationary one, an inflationary tax would exist, so it's basically the same. Of course first best would be to agree on debt reduction costlessly, or a widespread debt reduction a la Argentina.

At 8/15/11 10:08 PM, Der-Lowe wrote:

The people paying the consumption tax?

But that was on the non-inflationary scenario :/ In the inflationary one, an inflationary tax would exist, so it's basically the same.

Yeah, that's my point... Unless we're completely off page.

Worth it or not, a direct consumption tax has a viction, i.e. whoever pays the tax. If we both agree inflation has the same economic effect [assuming that the inflation occurs in a helicopter fashion] as a consumption tax, then inflation has victims does it not?