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binarytobis@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

• pirateKaiser@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  This math only maths if your income keeps pace with inflation. Otherwise you’re getting priced out of living. Even if in relative terms your debt is shrinking, that doesn’t make you better off on its own.

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  • binarytobis@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

    Yeah, that’s where the kinda comes in.

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• Mulligrubs@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  … and just like that, you figured out what the FED was for, and that our world economy is based on debt, with inflation used to defraud the hordes of workers from adequate wages.

  Once it crashes, they buy up those previously inflated assets at rock-bottom prices, and the process begins anew.

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  • explodicle@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

    I’ll show them, I’ll avoid those cyclical crashes by switching to Bitcoin!

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    • Mulligrubs@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

      Reason for The FED founding… let’s stop those bubbles!

      Immediately after FED founding… POP oh no! Well, let’s keep it anyway. It makes JP Morgan so happy, look at him giggling!!

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• gandalf_der_12te@discuss.tchncs.de ⁨3⁩ ⁨weeks⁩ ago

  only if the interest rate you pay on the debt is lower than inflation. let’s say, if inflation is 3% and your interest rate is 5%, you still make additional 2% real debt every year. if however inflation is 5% and your interest rate is only 3% then you win.

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• explodicle@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  Inflation is either expected or unexpected by the market.

  • If it’s expected, then it was already priced into your rate. The “tax incidence” of typical inflation falls on consumers, not lenders.
  • If it’s not expected, then the economy is failing and that’s not good for anyone.

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• ExLisper@lemmy.curiana.net ⁨3⁩ ⁨weeks⁩ ago

  Only if you have fixed interest rate which a lot of people don’t have.

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