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Is Inflation Good Or Bad?

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Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.

From wiki

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Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.

From wiki

The best way to debauch the State Communist system is to try it.

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The Q&A link "Inflation Explained" makes no mention of monetary supply and hence currency devaluation.

Edited by Money Spinner

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The best way to debauch the State Communist system is to try it.

Was he wrong though? Or is he always wrong by virtue of being a communist. Even if he was right.

I always saw that quote as an instruction rather than a warning though...

Lenin: The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation

Perhaps Fukuyama was right and it was the End of History. Its just that we lost.

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Hyperinflation in Poland from 1989

http://en.wikipedia.org/wiki/Hyperinflation#Poland.2C_1989-1991

"Poland experienced a second hyperinflation between 1989 and 1991. The highest denomination in 1989 was 200,000 zlotych. It was 1,000,000 zlotych in 1991 and 2,000,000 zlotych in 1992; the exchange rate was 9500 zlotych for 1 US dollar in January 1990 and 19600 zlotych at the end of August 1992. In the 1994 currency reform, 1 new zloty was exchanged for 10,000 old zlotych and 1 US$ exchange rate was ca. 2.5 zlotych (new)."

Charts

http://www.inflation.eu/inflation-rates/poland/historic-inflation/cpi-inflation-poland-1990.aspx

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Inflation/devaluation isn't just good, it's plain brilliant!

Congreve: The best way to rob all the peoples money is to buy gold and then watch as fools and knaves either have to inflate the currency or face an economic crash of their own making that will thoroughly devalue the currency.

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Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.

Lenin was being less than truthful as he knew full well the process he was describing above was/is not capitalism but is what happens when Socialists infiltrate capital markets.

Under pure capitalism nobody has the right to create money out of thin air.

Socialists need bankers to create the debt they so love to use to bribe their supporters with.

Capitalism isn't dying in this country it is Socialsim that is dying, once our currencies are destroyed we will once again return to a more equitable sound money system.

That is until the Socialist statist money printers mess it all up again.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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