Homestead mailing list

[Don Bowen <don.bowen AT earthlink.net>]

At 10/28/2005, you wrote:
> There is a fourth solution, although it might be looked on as just a form of
> benefit reduction.  That solution is to let inflation run rampant so that we
> are paying the dollar amount of the benefits we promised but do so with much
> cheaper dollars.


That is the method used by governments since they first started minting 
money.  Debasing the currency is a quick fix but leads to other 
instabilities.  While the government may be paying off promises with 
cheaper currency, long term borrowers also get to take advantage.  Long 
term borrowers are not only home owners with loans that now can stretch to 
40 years but also include businesses that floated long term bonds.

The most recent Time Magazine has an article about the airlines and others 
dumping promises made to employees.  With the support of congress and the 
courts (both of whom have a very good retirement) companies have dropped 
health care and pensions.  Part of that is that we have the most health 
care system in the world.

Don Bowen                          Awl Knotted Up

My travel journal
http://www.braingarage.com/Dons/Travels/journal/Journal.html

My present location is the star on the map in the link below
http://www.mapquest.com/maps/map.adp?latlongtype=decimal&latitude=35.588269&longitude=-82.629132