“During Great Inflations, Societies Turn On Themselves” And Prosecute Minorities … And We’ve Got A LOT Of Hidden Inflation
September 15, 2011
Inflation Is A Tax
The father of the government stimulus – John Maynard Keynes – famously said about inflation:
By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.
Fed chairman Ben Bernanke also admits that inflation is a tax on the American people:
Money printing creates inflation.
But quantitative easing doesn’t help anyone but the biggest Wall Street companies (and see this, this and this). We can’t inflate our way out of our debt crisis. Indeed, Bernanke knew in 1988 that quantitative easing doesn’t work).
(War also causes inflation, and we’ve been on an endless series of wars over the past 10 years.)
Stimulus Versus Austerity: A False Debate
And as I’ve repeatedly noted, the never-ending fight between Keynesian stimulus and debt-cutting is a false debate. It is really a debate between helping the American people or continuing policies which simply redistribute wealth upwards to the richest .1%.
Stimulus could work … if it went to the American people and Main Street, instead of the Wall Street fatcats. And the Fed could easily deploy trillions into the economy if it simply stopped paying banks to park their excess reserves at the Fed.