Inflation is something we like when we’re in debt , which stays in constant dollars, and need more dollars (albeit of less intrinsic value) to repay it with.

Inflation is bad, however, because it reduces the dollar’s purchasing power and puts upward pressure on bond rates, which have to factor in inflation protection so that real yields will be attractive to investors.

What we need to understand here is that our government has an interest in keeping inflation both secretly high and officially low.

Peter Schiff

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