What is inflation?

Inflation is:

invisible tax to those who have,

lower the tax burden (China is loser here),

invisible salary cut,

invisible cut in your entitlements/welfare,

investment incomes (dividends and appreciation) worse than on paper (the winner is stock losers)...

However, deflation is far worse than inflation. When the company produces a product and find out they have to sell it less, then their profit would be cut and they need to hire less. The government job is ensure inflation and deflation are at acceptable levels.

---
Joke:

Obama's body guards argued with the prostitutes inflation kept them losing purchase power and the prostitutes doing same should suffer same.

They said the prostitute did the same job with 1 or 2 at the same time.

Normally they got the 10th job free and Obama was busy that night.

They negotiated in local currency, not USD.

Important notice. I am not one of the body guards, so it is just an observation. :)


-------

(c) TonyP4 2012. Written in 4/24/12. Last updated in 4/24/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.