link: http://bit.ly/1O6mCGr
Hot And Trending...
Trending
- March report "How Revolutions, Wars and Plagues are Harbingers of 'Great Changes' in Societies and in Economics" published. http://bit.ly/2y4LJZQ
- Steve Wynn says deficit spending is “degrading” America’s standard of living. See what he says about the debates: https://t.co/nXr3r30CWN
- Somaliland's Private Sector at a Crossroads
- If This Is a Recovery, We Don't Want to See the Next Downturn @SchiffGold http://t.co/p92k7yR23d
- Would you let your cat play with a 9 grand on a ball of yarn? http://bit.ly/2ArHoQ7
- VOXEU: Leveraged bubbles
- Dow Jones down 6% from its highs & falling fast. How much more will it fall before the Fed stops pretending the data supports a rate hike?
- What are the causes of economic bubbles according to the Austrian School of Economics?
- Before any more money can be loaned to Puerto Rico, existing debt must be restructured, and largely repudiated.
- The complexity of violent crime and the role of state-sanctioned killing
Tuesday, September 1, 2015
Inflation and Dollar-Denominated Assets
So, I understand why those holding physical dollars would be hurt by the government printing up money out of thin air, but find it harder to see, as I recently heard Bob Murphy state, that it also hurts those who have assets denominated in dollars. How is this so? To my mind, the first thing is that the prices of dollar-denominated assets go up during inflation, resulting in a wash more or less since it's hard to say where the new money will flow. I can see how those holding dollars suffer, but not those with assets denominated in dollars. By dollar-denominated assets does he mean creditors expecting payment in dollars, as opposed to owners of land, etc.? Thank you for the clarification.