Does monetary inflation increase the rich-poor divide?

February 26th, 2007

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Much of the latest economic boom that we see in Australia, United States and Britain are based on asset-driven growth (see Myth of asset-driven growth), which comes about through monetary inflation (aka ?printing? of money). Back in December last year, in How to secretly rob the people with monetary inflation?, we explained that whenever government ?print? money, there will be an unfair redistribution of wealth. As such, usually the common people on fixed salaries and who do not own any ?assets? will have to bear the brunt of price inflation.

As such, we are hardly surprised to see this article in the mainstream press.