Sunset Sketches of a Little Country

Wednesday, March 10, 2010

The 4% Solution - the IMF's Rethinking on Inflation

Who's discussing devaluing the world's Currencies to re-pay the debt Mountain with devalued dollars? (on a case-by-case basis, by the individual sovereign countries of course)

Many/some/a few ordinary people wonder what the heck is going on with "the money".

How can the gov't's and central banks keep "creating money" without an "announced plan" on how it will be paid off?

Does some Finance Minister, Bank Mogul, President of a Central Bank (or financial speculator-with-a-political-agenda) or anybody have a Grand Design on how to unwind this borrow-to-bail-out/too-big-to-fail debt mountain (at the national, provincial/state and municipal levels-oh my! what a field-day for financiers) that virtually all G20 countries have built as a method to stall/cure the credit bubble-burst crisis?

The International Monetary Fund IS proposing one .... and since it's so painless for the G20 governments to follow (IF everybody else does it) then please await the gradual introduction of a widely recognized new "acceptable level" for state-sanctioned inflation ..... 4% annually. see Rule of 72 for implications on "the money"

I was introduced to the IMF report yesterday through two purposely side-by-side articles in the Financial Post on pg FP15 - good ol' Terence Corcoran, the author and section editor

Macroimprudential monetary policy
Terence Corcoran,
Financial Post Tuesday, March 09, 2010

The IMF Inflation Illusion
Axel A Weber & Philipp Hidebrand
Fin Post & Elsewhere on Canwest Mar 9/10

Oh my - it's already 'hoist up the flagpole' - Mr Corcoran was fighting a rearguard action ...

Higher inflation may not be bad
Edward Hadas, Published: Monday, March 08,

OH Oh MY!! It's OLD news

IMF paper suggests higher 4% inflation targets
Reuters Published: Friday, February 12, 2010