Archive for August, 2009
If inflation is cause by government actions, government tax revenue will go up without an increase in tax rates. However, everyone will pay more taxes. How? Inflation causes everything to go up which will move people into a higher tax bracket. Think about this.
If the Federal Government prints money in order to buy it’s own debt, it is monetizing the debt. This is basically borrowing air and pretending like it has some type of value. This has the potential to cause serious inflation.
