Friday, May 22, 2009

America to use the "Zimbabwe Solution"

A great piece by Carolyn Baum on those who wish for the FED to use inflation (6% a year) to ease us out of the recession. They say we need to help those who are struggling with their decisions. This is nauseating.
In the Middle Ages, they threw people who failed to repay their debts into debtors’ prisons. Today debtors are rewarded with all kinds of government perks. Look how far we’ve come!

Borrowers took out mortgages they couldn’t qualify for to buy homes they couldn’t afford. When the housing market collapsed, they were rewarded with government-subsidized mortgage modifications and, in some cases, partial forgiveness on their loan balances. And now, under Rogoff’s 6 percent solution, debtors would see more of their burden lifted.

And we, the savers, get screwed again.


  1. If Robert Mugabe says inflation is the way to go, you know it's true. I for one will be the first in line to invest in helium.

  2. Just another example of people not learning what they should have in high school.