The taxpayers of course.... In simple speak.... Once upon a time there was a $70 Trillion economy.... Over $30Trillion was lost.... Deflation became most dominant.... Prices had to adjust to the new $40 Trillion economy.... ........................................................... This means jobs, pensions, businesses, homes....etc...lost by the millions who were somewhat innocent as to why the money was lost.... ........................................................... The politicos reacted by printing money which made the prospects of resolving the problems even worse by saddling the somewhat innocent taxpayers of the future by making the highest cost component of products ....the tax component.... ........................................................... The point being....the somewhat innocent can pay now....or a somewhat different set of innocents can pay later.... ........................................................... That is if there seems to be an inevitable political need for the somewhat innocents to pay other somewhat innocents.... ......................................................... The problem left alone would simply mean that deflation would take hold to the fraction of 40/70.... Any other fed actions to further dilute the money supply or to tax more will be only adding to the problem....although verbally, politically sounds reasonable.... ........................................................ The correct thing to do is to build again from the 40/70 premise....and not to reward those who drove the bus and killed the children....No more buses to the bad bus drivers ....they were given their shot....and blew it.... .................................................... Needed govt. actions..... Regulate too big to fail....by making them not too big.... .................................................... The money has already been lost.... And it is not fair....to many .... All is not fair.... ........................................................... Round numbers.... $12 Trillion....230 million people.... Approx $53,000 apiece.... At the current pace.... $30 Trillion will be approx. $159,000 per person..... Which is basically charging each person a house....with the person not receiving a house.... Which reeks of incredible stupidity by the politicos..... ...................................................... The govts. affected need to re-regulate....and to rebuild.... With the first need being to dramatically downsize ....and thus procure incentives for entrepreneurship.... Such as tax reform ....removing all taxes except for a 10% consumption tax.... ......................................... It is rebuild "for real" time.... However the current set of politicos will sadly perform what sounds good ....trying to save their own votes..... Watch it happen....
The Public Sector was already locked into massive debt. Deflation was not an option for them, only inflation can cure what ails them...
Exactly..... Thus the term....."Somewhat Innocent".... Inflation resolving prior legal agreements, whereas the current status will not support previous prices.... The losses are history....rendering the old prices history as well.... Time to rebuild 40/70....