tag:blogger.com,1999:blog-5247589365287153101.post1422191361226461037..comments2024-03-27T20:26:02.107+00:00Comments on Caustic Comments:: The Do Re MiDick Pountainhttp://www.blogger.com/profile/13285966704575531342noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5247589365287153101.post-26143308876049216892020-07-05T18:31:17.976+01:002020-07-05T18:31:17.976+01:00Dick, I think the missing point in Piketty's a...Dick, I think the missing point in Piketty's analysis here (I'm sure he must cover it somewhere in the book) is that governments are able to print their own money, or better still call it into existence with a few clicks on a keyboard. They are already printing the money to pay the debts incurred as a result of the 2008 crisis and it's clear they will print a lot more to pay for Covid-19. So far this has had only a partial effect on inflation - driving big increases in asset prices but not much on current expenditure (although I think there are hidden increases in terms of lower value for money which may bite us in the end). As long as governments still own the assets which have been financed by the capitalists' lending then it should end up ahead, with the assets generating higher nominal revenues while the debt is fixed and at historically low interest rates. But sooner or later inflation will rise sharply. So make sure you own real assets, where you can, rather than squiggles in a bank account, which is all that cash is in C21, ultimately.Anonymousnoreply@blogger.com