Saturday, February 14, 2009

Who pays for the stimulius?

With so much in the news about the stimulus in I find myself asking who's paying for it. The money is not coming from tax increases. Nor have there been increased savings inflows from abroad. That the dollars are coming from the printing press fails to identify who is paying. Historically printing currency means inflation. Inflation means the value is coming from the devaluation of assets and savings.