Inflation is a form of taxation. I will explain
Government must live within 25c. But suppose government spends more than the 25c? They do so by borrowing from savers.
In other words, if government is given $1 by the frugal saver. When the saver gets back his $1, it must be able to purchase the same goods & services as before.
It’s government that consumes the dollar today. Suffering no prejudice. What if in a year’s time the government pays back the $1, but it can now buy goods worth 12c?
What recourse does the saver have? Now that his $1 is now 12c? Does government have this right?
Today, the $10bn can only purchase goods worth USD$100m. What happened to the rest of the money?
Ps. I have not included RBZ & parastatal debt. This is equally devastating to savings.