ANGRYBUTTCRACK
Well-known member
- May 6, 2021
- 1,832
- 1,550
I was too young/dumb to understand or experience the kind of crazy inflation that is happening right now (cause I was a kid), but learned a lot about it in college and have watched/read plenty on nations with runaway inflation and what it does to the economy, folks savings, etc...
Obviously when inflation is out of control, holding the inflating fiat currency is where you get killed. Having assets (that will inflate is a bit of protection, but you can get stung if the economy is crushed). The assets might not pace the inflation 1 to 1.
Owing money if it's a low interest rate makes sense. If your wage eventually inflates right? Imagine you owe $250k on a $500k home and you make $100k/year. If you have crazy inflation, then your wage should inflate.. let's say it does 5X.. so now you make $500k/year (which buys the same amount of goods $100k used too).. your mortgage now just went down theoretically by 4/5ths (80%)... and the house wouldn't be a $500k home.. in this scenario if it matched inflation, it would be a $2.5M home.. so you get to pay off that asset with 1/2 a year's salary.
I personally have no debt and have no plans to take it on. My only saving grace is a large (paid off) amount of my business inventory. Today I saw a part my customer paid $9.50 each for in 2016. Today, that part costs $59.75 each.
Hopefully, 2022 and 2024 there will be political changes, but for some time it seems both parties are spending like drunken sailors.. when it's the Dems it's social garbage, Republicans, more military, .. both feed the corporate machines for kickbacks. I'm a Liberation (mostly).
As I've stated before, if you're salary or hourly, you should be asking for AT LEAST a 10% raise.. if not, you just got a pay cut. I appreciate anyone's expertise/insight as I definitely don't have all the answers... unless it's what to drink..
abc
Obviously when inflation is out of control, holding the inflating fiat currency is where you get killed. Having assets (that will inflate is a bit of protection, but you can get stung if the economy is crushed). The assets might not pace the inflation 1 to 1.
Owing money if it's a low interest rate makes sense. If your wage eventually inflates right? Imagine you owe $250k on a $500k home and you make $100k/year. If you have crazy inflation, then your wage should inflate.. let's say it does 5X.. so now you make $500k/year (which buys the same amount of goods $100k used too).. your mortgage now just went down theoretically by 4/5ths (80%)... and the house wouldn't be a $500k home.. in this scenario if it matched inflation, it would be a $2.5M home.. so you get to pay off that asset with 1/2 a year's salary.
I personally have no debt and have no plans to take it on. My only saving grace is a large (paid off) amount of my business inventory. Today I saw a part my customer paid $9.50 each for in 2016. Today, that part costs $59.75 each.
Hopefully, 2022 and 2024 there will be political changes, but for some time it seems both parties are spending like drunken sailors.. when it's the Dems it's social garbage, Republicans, more military, .. both feed the corporate machines for kickbacks. I'm a Liberation (mostly).
As I've stated before, if you're salary or hourly, you should be asking for AT LEAST a 10% raise.. if not, you just got a pay cut. I appreciate anyone's expertise/insight as I definitely don't have all the answers... unless it's what to drink..
abc
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