Re:The fraying of the U.S. global currency reserve system
by notahacker on Sunday December 13, 2020 @02:41PM
(#25409444)
Inflation can easily be dodged by those with foreknowledge (hold your wealth in assets whose value will inflate). Borrow lots of money at a low fixed rate to buy property and you might even make a profit.
Unexpected inflation is a wealth tax on people who loan out their wealth at fixed rates or store most of it in cash, and an sales tax on people and organisations unable to renegotiate salary or contracts. Exactly who is negatively (and positively) affected is complicated, but it certainly isn't directly proportional to how well off people are.
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Re:The fraying of the U.S. global currency reserve system
by imtringued on Monday December 14, 2020 @04:10AM
(#25414921)
It depends on where the money arrives first. Right now all of it goes straight to assets while completely skipping over workers. Whatever asset inflation happens, consumer inflation will always be behind.
If the money arrives on the consumer side first then asset inflation will follow but only after consumer inflation has caught up. All the asset inflation that happens will be caused by productive growth. Encouraging the wealthy to get rich off the backs of rich workers is exactly the situation that we want to achieve. Right now they have no need for domestic workers because the central bank tap is wide open and workers in China manufacture all the widgets (such as iPhones) they need.