Serious 2% target inflation is invention by rich people to enslave, exploit poor people.

[bic_cherry]

Inflation is a weapon of rich people to rob and exploit poor people.

2% target inflation is generally an invention by rich people to enslave, exploit poor people.

Rich people own many properties, own shares in companies. Mostly the amount of liquid cash held by rich and poor people is about same since rich people prefer to hold little cash because they know that inflation will erode the value of cash at the rate at which they have set inflation at.

Inflation helps the rich to remain rich always because the poor will always have to work since their savings are eroded significantly by inflation and they have little property to dispose off to yield $$$ in old age.

Inflation helps to scare poor people into spending $$$ made by factories whose share holders are rich people.

But mainly, inflation helps to keep poor people working and serving rich people because any savings of the poor are eroded by inflation and the rich remain well served both by share dividends from the companies that they own as well.as from disposing off real estate or living off rent from their real estate which they rent at inflation adjusted (increasing) rent to the poor.

Example of rich people:
or
[YOUTUBE]ZQ-YX-5bAs0[/YouTube]


Example of poor old people working to death in Singapore (McDonald's, collecting waste cardboard for recycling, cleaning hawker tables to earn a living):

http://theindependent.sg/elderly-la...es-at-a-hawker-centre-and-works-as-a-cleaner/

Poor old people renting cages to live in Hong Kong:
HKG cage housing:

 

[nightsafari]

would it not stand to your proposition then that a higher inflation rate would lead to better outcomes for the rich?

 

[Bad New Brown]

Younger people still have a great chance of earning and saving aggressively as to beat the future inflation avoid penury at their old aged

 

[syed putra]

Younger people still have a great chance of earning and saving aggressively as to beat the future inflation avoid penury at their old aged

The lower qualified young people i knew worked two jobs. Day time office and night time at discos and clubs.

 

[nightsafari]

The lower qualified young people i knew worked two jobs. Day time office and night time at discos and clubs.

kudos to them

 

[bic_cherry]

would it not stand to your proposition then that a higher inflation rate would lead to better outcomes for the rich?

Of course. Those who own factories, real estate, love inflation because it makes them rich. Inflation will increase demand for their goods in short term since poor people are induced to spend more knowing that prices will move upwards. It is also easier to hire factory workers because these poor folks have no choice but to work after their savings are severely eroded by the effects of inflation.

 

[nightsafari]

Of course. Those who own factories, real estate, love inflation because it makes them rich. Inflation will increase demand for their goods in short term since poor people are induced to spend more knowing that prices will move upwards. It is also easier to hire factory workers because these poor folks have no choice but to work after their savings are severely eroded by the effects of inflation.

That is very clear and concise and makes sense.

but but, why is the Fed's supposedly primary concern to keep inflation in check? shouldn't they run on a higher rate of inflation as opposed to raising rates whenever they feel it possible to do so? Shouldn't they perpetually run the lowest rates possible? I mean they are supposed to be controlled by the rich rite?

 

[Bad New Brown]

The lower qualified young people i knew worked two jobs. Day time office and night time at discos and clubs.

That includes those part time or ad hoc security scanning jobs at Sports Hub National Stadium (soccer matches) or Indoor Stadium (concerts), if youth are hardworking they can quite a number of perks free

 

[rushifa666]

Younger people still have a great chance of earning and saving aggressively as to beat the future inflation avoid penury at their old aged

In sinkieland? You will die for sure

 

[bic_cherry]

That is very clear and concise and makes sense.

but but, why is the Fed's supposedly primary concern to keep inflation in check? shouldn't they run on a higher rate of inflation as opposed to raising rates whenever they feel it possible to do so? Shouldn't they perpetually run the lowest rates possible? I mean they are supposed to be controlled by the rich rite?

Actually they shouldn't even be manipulating the rate because it causes instability in the USA, not least the world.

China has caught the USA capitalistic disease and now own $3T in USA treasuries which is destabilizing to USD.

Ultimately when inequality hits the roof, people will protest as they do in Hong Kong and the economy will shut down or even down spiral into civil war if i.e. racial or environmental issues become conflict points (or even economic or land grabbing issues such as South China Sea (Vietnam vs China conflict)).
========

PS: Lehman brothers crisis was very much a result of low interest rates if u recall correctly.

 

[nightsafari]

Actually they shouldn't even be manipulating the rate because it causes instability in the USA, not least the world.

China has caught the USA capitalistic disease and now own $3T in USA treasuries which is destabilizing to USD.

Ultimately when inequality hits the roof, people will protest as they do in Hong Kong and the economy will shut down or even down spiral into civil war if i.e. racial or environmental issues become conflict points (or even economic or land grabbing issues such as South China Sea (Vietnam vs China conflict)).
========

PS: Lehman brothers crisis was very much a result of low interest rates if u recall correctly.

i agree. but i still wonder why there is a "generally accepted wisdom" that keeping inflation in check is supposed to be primary goal of interest rate controls and the controlling entities. well at least that's what i hear.

as for China, I think that is an unmitigated disaster waiting to happen. China thinking so clever, owning US trashuries, so much foreign reserves. Wondering if in my lifetime whether I will see the "new dollar" because the old one was scrapped. $3tn become worthless instantly.

 

[Bad New Brown]

In sinkieland? You will die for sure

Not really lah, the youth in the 20s now still can make it in sinkieland