tag:blogger.com,1999:blog-11719208.post1572786583228502932..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Ideal U.S. interest rate is minus 5 percent?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-11719208.post-19930440512151097782009-04-27T11:18:00.000-07:002009-04-27T11:18:00.000-07:00The question is, are we going to fire the civil en...The question is, are we going to fire the civil engineers that built the current US economy (The Fed) and hire competent ones to rebuild it? It occurs to me that the purpose of inflation is to be able to still make money even when you have debt (banks do this). With zero inflation, a negative net worth is very bad. With positive inflation, your debt becomes worth less. So anybody with a negative net worth (the Government, banks, anybody doing 'leveraging') wants inflation. Deflation isn't bad, unless you have debt. Period. It only becomes bad when 'everybody' has debt and 'society will come crashing down' like the Tacoma Narrows Bridge. Just remember that anybody not on the bridge didn't get hurt. Now you can go ahead and tell me I'm wrong.Unknownhttps://www.blogger.com/profile/06191483776082044360noreply@blogger.com