[quote]How would high inflation punish the most irresponsible or contain govt spending? High inflation is the primary financial goal of govt now, and is favored by maybe half the business community, and probably 2/3 or more of all voters.[/quote]
What I jokingly said was I was hoping for high interest rates AND hyper-inflation. While the feds are hoping for moderate inflation, I can guarantee you that they do NOT want hyper-inflation,…nor do they want extremely high interest rates. If interest rates went through the roof, while at the same time unemployment worsens, and prices of goods and services skyrocket, the recession will get much worse….some might even call that scenario an inflationary depression.
And as history shows us, in nations that were subjected to hyperinflation, incomes never came close to inflating at the rate of everything else. While it would hurt just about everyone, people who would be hurt the most would be those on fixed incomes.
