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binarytobis@lemmy.world 3 days ago
Kinda related: At some point I realized inflation is actually kinda good when you have no assets and large debt, because it effectively shrinks your debt. The problem is, I only thought about it well after paying off my debts and gaining some assets, so now I feel like the guys in the pic if I talk about it.
… 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.
I’ll show them, I’ll avoid those cyclical crashes by switching to Bitcoin!
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!!
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.
Inflation is either expected or unexpected by the market.
Only if you have fixed interest rate which a lot of people don’t have.
pirateKaiser@sh.itjust.works 3 days 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.
binarytobis@lemmy.world 3 days ago
Yeah, that’s where the kinda comes in.