Can Inflation Help ?

It depends on who you are trying to help. Inflation is great for debtors because it devalues the cost of the real debt that is owed; paying back borrowed expensive dollars with cheaper dollars. In this case, inflation would help the US government tremendously, especially with the recent purchase of a car company. We also know that “we are out of money” and that the FED is now worried about the overall health of the dollar. But why is that bad? Our friends over at the Mises Institute produced an article today entitled: Can More Inflation Revive the US Economy? It’s a great read and provides intellectual ammunition in defense of the free market.

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