PPRuNe Forums - View Single Post - Growing Evidence That The Upturn Is Upon Us
Old 10th Jul 2009, 10:22
  #2695 (permalink)  
Wee Weasley Welshman
 
Join Date: Feb 2000
Location: England
Posts: 14,994
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High inflation does erode the debts of those most heavily in debt in society which are people in their 30's and 40's with large mortgages and in paid employment. A few years of 8% inflation can make those mortgage debts shrink. The retired on fixed pension incomes would be much less happy.

However, broadly the retiring generation are in a much better financial position than their children so perhaps a transfer of wealth is in order. Unfortunately the older generation vote more often so this is politically difficult.

There has never been an example in a developed currency whereby printing money did not result in galloping inflation which usually needs constraining with high interest rates. Unfortunately the UK along with much of the West is in a least-worst scenario where all the options are pretty horrible.

Bottom line - the market needs not so many airline pilots as it once did.


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