Yahoo Finance: Pray for inflation?

It’s our only hope, apparently

Everyone thinks the Fed’s job is to fight inflation, but right now the Fed is actually doing everything it can to cause inflation.

Why?

It part to help the economy get cranking again.  Inflation provides an incentive for people to spend cash rather than saving it, because if they save it, the cash will lose value rapidly.

Inflation also helps solve another problem, though–our debt problem.  The more inflation we have, the less our dollars will be worth.  Because our debts are based on a specific number of dollars and not a specific value, the less our dollars are worth, the easier it will be for us to pay off our debts.

Hmm, looks like the cat’s out of the bag, finally. The federal government is going to inflate its way out of debt. Remember two things. First, inflation is a completely manufactured phenomenon. It only happens because the people who control the currency want it to. Second, inflation is a tax on wealth. If you have cash, inflation makes it worth less. If you have debt, inflation makes that worth less, too. Now consider who has more debt than they can ever pay off and absolutely no cash? DING DING DING! The federal government!

So inflation is an important tool in getting us out of this mess.  It’s painful and unfair–those who have been responsible and saved money will pay the price for those who borrowed money, racked up huge debts, and spent more than they could afford.  But it’s what the Fed is (quietly) aiming for.

With inflation, those who have been responsible and saved money will lose money to the direct benefit of those who have been irresponsible and racked up debt. It doesn’t get any clearer than that. And that is EXACTLY what our government is trying to do to us right now. There’s no justice. Playing by the rules and being responsible is discouraged. This is the moral hazard that occurs when money has to inherent value and political elites are given control rather than relying on laws and markets.

Might as well load up on non-perishables, because saving money is a pretty stupid idea right now.