Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: pater tenebrarum who wrote (4447)	6/7/2001 7:34:26 PM
From: Maurice Winn	Read Replies (2) of 74559

<all an additionally printed dollar does is debase the value of all remaining outstanding dollars. no value is created, it's just a piece of paper. what it DOES do, is punish all savers. so even though it is a form of back-door taxation, it does NOT confer a social benefit. > True, another printing dilutes existing dollar holders and they lose value. My point was that most people [not me] consider taxation to be socially desirable and better than leaving the money with those who earned it. Printing another dollar is the most painless, simple way of taxing people. No tax collectors are needed. No search warrants of court cases or imprisonment of defaulters. Just another day at the printing press. It doesn't punish savers as a group. It just punishes people who collect dollars. Saving can be done by way of share ownership. Earn a dollar and deposit it straight into your share account means you suffer no tax loss from the printing. Nobody needs to hold dollars, so if they choose to, they can avoid the printing tax. But if the printing is kept to a low level, people often prefer to hold the cash, earn a bit of interest and suffer the dilution. Running a money supply does deserve some reward. The payment is included in the printing. Deflation is generally considered bad. So they always print enough to keep a very slight inflation rate. Most people are unaware of just how big a scam that is. Our job as investors is to understand these scams and own money or shares or something else to benefit from the outcomes. I handle it by borrowing some of those puff-ball dollars at derisory interest rates to buy the technological revolution [while avoiding borrowing too much - which can cause margin calls in the downdrafts]. Mqurice

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