Inflation and it's effects

Inflation is a major problem for this upcoming administration, already about 800 billion dollars alone have been proposed by President Obama to be injected into the economy, or rather his favorite peoples and causes, this is all just from Obama and does not count the 'tax cuts' included in the stimulus act. Not to mention the Billions that Paulson mark 2 is going to use for his friends on Wall Street.

But what is inflation? Well, inflation is the increase in monetary currency. In pure theoretical terms this wouldn't be a problem. However, inflation doesn't go and increase all the prices across the board immediately, some prices go up before others, depending on the placement of the inflation and where is goes first, only later balancing out. Why is this bad? It fools entrepreneurs in how they invest and where. Entrepreneurs are one of the main engines of the economy and if there aren’t more of them at each and every turn, the economy would slow to a depression.

Now, the problems of a paper-backed currency is that, while it doesn’t have a limit to how much can be printed (unlike currencies that are backed by silver, the standard before we were taken off the standard), is that inflation can occur VERY easily and almost never stops. That’s why everyone has to be careful about inflation and where money goes.

Finally, What president Obama has been doing with all the bailouts is removing the actual social Darwinian function of the market as Paulson has done (I blame the ‘Bush Bailouts’ on Paulson, not Bush, Bush was too stupid to think things through and Paulson is a Keynesian who wanted to give parachutes to his friends on wall street). Now we have Obama and many economists (also Keynesian, not Monetarists) who say that big government is the only way we would get out of this.



Sorry about how rant-like this sounds, but this is a blog, and I did put information in here, though if you are smart or experienced, this wouldn’t matter as you would know this already. Also sorry for the horrible update rate... hopefully I'll make sure that i can update more, my spring break will be a major updating of the blog, as it's a week off and i don't have anything to do