But the general definition of inflation is the risein the price of goods and services. However, thisis a subtle shift in the blame the same asMarxists yell about the rich to justify takingyour wealth to pay for the state employees. Intruth, it is the depreciation in the purchasingpower of the currency and NOT the rise in theprices of goods and services. Likewise, the rich
don’t have tanks and cannot enact laws to
confiscate your wealth. The above chartillustrates the decline in the real value of government bonds. This has been the
Bonfire of Real Wealth
.Unfortunately, the general outlook of allgovernment bonds (
irrespective of the country
)is about as naïve as was the expectations in realestate and the leveraged mortgage market.Governments just keep borrowing with NOintention of paying anything off. Government isconsuming real wealth at unbelievable recordproportions. There are periods of regroupingwhere it will appear at first glance thateverything will be alright. This is merely the eyeof the storm. We have gone through the firstpart of building the debt, and now comes thehard part; confronting the debt.
government debt is in serious troublebecause they just never fund a damn thing. Thesolution is to always borrow and there is noplan to ever pay anything back. The behind thecurtain reasoning is they are burning money forfuel because they are always reducing the valueof prior debt that is never indexed to inflation.The US trillion dollar national debt in 1980under Reagan was the accumulation of costs fortwo world wars and social programs, has nowbecome
less than a single year’s expenses. So
past debt is always debased in valueperpetually.