Bailing out F & F will surely lead to one outcome: High Inflatio
Wednesday, September 10th, 2008Future infusion of cash into such a big hole like Fannie and Freddie will surely make government print unimaginably large sum of money into circulation. On the surface, it’s a move to try to pull the economy out of a big pit and government is branding it as a move to help the working class and avoid depression. Under the hood, it’s a move to fan inflation into the economy for the next 2 decades, leading to high loss of value for paper money (on the flip side, bolstering a high asset price such as housing, land and material). The society will experience a further gap widening between the asset holders (rich classes) and non-asset holders (poor working class). By the end of 2030, nobody would understand what a middleclass is because this class won’t exist at that time. The move officially unveiled a long period of high inflation, reminising the 70s and 80s.




investment property