Most of us know that the government is having Treasury spit money off the presses at the Mint fast enough to beat Jeff Gordon in the Daytona 500. Typically when this occurs, inflation rears its ugly head and devours the real value of any of my holdings in a bank. As I was thinking of ways to build a better shield to ward off this recurring demon, I began wondering if inflation would really become a problem at all.
It may sound insane, but think about it: For the past 12 years, much of our "economic gain" has occurred using credit, or in other words money that wasn’t really ever there to begin with. So perhaps to a large extent the newly minted reduced-value dollars will simply be replacing money that never existed in the first place. Maybe we can afford to print a lot for a little while and suffer no net inflation?
Thoughts?