So…since inflation benefits the people who owe lots of money and hurts people who are savers…guess who the economists want to benefit?  That’s right!- we figured you’d get it.  According to Bloomberg, since May, economists have been calling for inflation to trick people into spending/consuming rather than saving and to “lessen” the burden of the “debt bomb”.  Funny thing, the debt is owed to someone and it’s those people who are owed that suffer when they are paid back with devalued dollars.  So who is the group that benefits most directly from inflation?  You might think people who owe home mortgages.  But, since they are NOT seeing any wage inflation, they’re not benefiting…  It’s the banks- they are levered to the hilt and they get to pay back their debtholders with newly printed money.  Recently, a long list was published of economists who advocated “independence” of the Federal Reserve – independence meaning freedom from Congressional oversight. We suppose all economists aspire to work for the Federal Reserve and that’s why they all protect the FED at the expense of savers.  But even though the FED may be free from Congressional oversight, the FED is never free from its legal owners – the very same levered banks who benefit most from inflation.  IStockAnalyst has a good piece on this here.

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