Inflation

The economy seems to have avoided meltdown. The boost was the the bank support package that Bush started and Obama is completing. It has prevented any further financial collapses. Credit and lending are no longer contracting. And the stimulus package has just began to come online. With the trillions of dollars being pumped into the economy, many economists are saying that inflation could be a real problem in the years ahead (http://www.washingtonpost.com/wp-dyn/content/article/2009/02/19/AR2009021902578.html). When individuals owe money they can either pay it back or declare bankruptcy. But governments have other options for debt reduction. They can cause inflation. This decreases the value of the debt owed . This happened in the 1970’s. Between 1970 and 1980 the value of better collectible postage stamps rose 300%. I’m not making a prediction but the similarities between today and yesterday are clear. It’ll be an exciting ten years ahead in our hobby.