ECONOMICS: 2% inflation = 47 cents of purchasing power after 30 years

http://contrakrugman.com/ep-35-debt-default-good-or-bad/

Ep. 35 Debt Default: Good or Bad?
15 May 2016     |     Tom Woods     |    

You’ll never guess: Krugman contradicts himself this week, but only Bob Murphy, who knows Krugman’s columns inside and out, caught him. This week the topic is whether it’s a good idea at some point to repay the national debt at less than face value. Krugman is horrified, so maybe it’s a good idea….

Krugman Column“The Making of an Ignoramus” (May 9, 2016)
“Keynesians on Treasury Default: Depends Who’s in the White House,” by Robert P. Murphy
“Trump’s Right — Paying Back the National Debt with ‘Discounts’ Is Already Official Policy,” by David Stockman
“Repudiating the National Debt,” by Murray N. Rothbard

Related EpisodeEp. 33 Krugman and Hamilton Sitting in a Tree

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Key takeaway: 

If the Fed does meet its target inflation rate of 2%, then arithmetically over thirty years your dollar’s purchasing power is down 53%.

It’s a silent theft of your wealth.

Good luck saving with that scenario. Back to the analogy — what do you want find a pirates chest full of: US “dollars”, Confederate dollars, or gold coins?

Argh!

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