In response to:

Can It Happen Here?

Geronimo 909 Wrote: Mar 26, 2013 6:12 PM
Except inflation steals from the poor more than the wealthy. If you own a capital investment such as a home or hotel, your investment will increase in dollars as inflation increases. If you do not own anything, your paycheck buys less and less as the value of dollars decreases.
rk58 Wrote: Mar 26, 2013 6:30 PM
Continued:

This makes some type of durable good a good place to put your money during inflationary times.. you do NOT want your dollars just sitting in a bank. Since big inflation means big loss of value.
rk58 Wrote: Mar 26, 2013 6:29 PM
Geronimo: not so.. inflation only affects savings. You are assuming that wage levels stay the same.. but they inflate too.. when the money supply is inflated by a government printing money, prices for labor and goods both rise. There is an initial squeeze, but generally things stay even for ongoing trade.. the reason savings is different is that the money is just put in a bank, with typically a very low rate of return.. so inflation can 'do its damage'. If someone takes their money and puts it in platinum or some other item, then it will retain its value..

The lack of a standard for how many dollars should be in circulation creates the freedom for gov't to steal.

The decision of the government in Cyprus to simply take money out of people's bank accounts there sent shock waves around the world. People far removed from that small island nation had to wonder: "Can this happen here?"

The economic repercussions of having people feel that their money is not safe in banks can be catastrophic. Banks are not just warehouses where money can be stored. They are crucial institutions for gathering individually modest amounts of money from millions of people and transferring that money to strangers whom those people would not directly entrust it to.

Multi-billion dollar corporations, whose economies...