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Figure 5 Development of Various Economic Indicators The tendency is clear - government debts will sooner or later outgrow government income, even in the industrialized nations. If a child grew three times its size, say, between the ages of one and nine, but its feet grew to eleven times their size, we would call it sick. The problem here is that very few people care to see the signs of sickness in the monetary system, even fewer people know a remedy, and nobody has been able to set up a "healthy" working model which has lasted. Few realize that inflation is just another form of taxation through which governments can somewhat overcome the worst problems of increasing debt. Obviously, the larger the gap between income and debt, the higher the inflation needed. Allowing the central banks to print money enables governments to reduce debts. Figure 6 shows the reduction of the value of the DM between 1950 and 1989. This devaluation hit that 80% of the people hardest who pay more most of time. They usually cannot withdraw their assets into "inflation-resistant" stocks, real estate or other investments like those who are in the highest 10% income bracket.

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Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

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