[kurthr]

I don't particularly like the hypocritical (fiscally irresponsible deficit nags) borrow and spend financing that those two pioneered based on the misapplication of the Laugher Curve, tax policy, and Trickle Down. However, it seems like the real problem the world faces is not inflation (as rates have fallen for 35 years), but deflation. Perhaps this has been caused by dramatic technological productivity improvements and falling global birth rates?

The problem with trying to inflate your way out by adding debt is that profitable debt (eg when it is repaid!) is always longterm deflationary. Ultimately, the debts are either defaulted on, the rates reduced below average inflation, or $ are printed to pay them off.

People who hold lots of money hate inflation! They (banks) like deflation and increasing debt. A functional economy (due to human nature and our monetary system) seems to require a bit of inflation so everyone else would probably be happy with a bit of printing. If nothing else, it's the cheapest way to tax the population of $ holders that you'll every find.

[bubbleRefuge]

Upvote. Well stated. Think of it this way: All money is printed we just have to optimize the correct amount and preferably get it in the hands of those willing to spend it. Micro-economic thinking is the enemy of Macro Economics. Saving money is the enemy. If everyone saves what they make and doesn't borrow, we have no economy(we could barter though). Problem is to much money is sitting in accounts of the wealthy and not spend, we need to focus on increasing income to the masses. Best way is lower taxes and infrastructure spending. Forget about taxing the rich its irrelevant and politically unpalatable.