Inflation will only benefit you if your interest rates are fixed. If they are variable, you remain in the same relative position that you are now. Plus, if you don't own a home, your rent will go sky high.
The value of the land is constant, but the value of the dollar declines. As a result, the house may be worth 100,000 in USD and, say... 2000 ounces of gold, but after inflation the house costs, say, 1,000,000 USD, but still 2000 ounces of gold. Commodities never increase in actual value, but currency based on a fractional reserve scheme fluctuates in value.
However, you have forgoten the fact that the interest rate can rise big time before the dollars starts falling. Pay those credit cards as soon as possible and if you can get a fix rate loan.
I didn't check the website you referenced, and am not sure exactly what you're pissed off about, but you are not going to be rewarded for accumulating major credit card debt no matter how you look at it. Even if by the vagaries of fate you pay your debts back in devalued dollars, you will still be paying a lot of interest to the credit card companies and you stand to have your credit limits reduced or eliminated entirely if you owe too much.
I'm not encouraging incurring debt, and furthermore my point about feeling guilty if my debts are devalued by inflation is a hint that I am doing the responsible thing and paying back my debts, albeit slowly. I believe I mentioned that I was looking at a way to consolidate my debt, and in doing so I am looking for fixed-rate low-interest solutions to my (minor) problem. Alternately, I could just continue paying off a bit at a time until I graduate college and get a "real job".
No, if your debt is on high-interest credit cards you need to refinance it into a lower rate consolidation loan if you can, or even a lower-rate credit card, and then pay it off religiously, even if you have to do it slowly. And forget the guilt trip--even the government would like to pay back its debts to China, et al with cheap dollars. Problem is the yen, pound and euro have taken such hits recently that the dollar has gone up in value, a temporary anomaly I'm sure.
Or, since I`m a student, I can get a student loan and use it to pay some of the tuition my parents are paying for, then they`ll pay me the same amount as the loan, and I use that to pay my credit cards. Then I`m responsible for my student loan debt, which is a lower interest debt. I`ve discussed this with my family, and this was viewed as the best solution. My debt is not that much, but it`s nearly equal to a year`s pay at my extra-low student rate, which is in the 4-digit salary range.
Your guilt would be justified if we actually lived in a free market society. We don't. The fact of the matter is, we live in world that is run by criminals. If you are prudent and you save your money you lose. I would recommend tangibles; guns, ammo, food, and whatnot. If you have to go into more debt to get these things so be it. What is coming will not be pretty.
It's a sad state we're in if the first two things on your to-do list is to buy guns and ammo! Granted there is corruption in the world, but it has been that way forever and I see no indication of an upcoming apocalypse. You need to explore the planet more. People are basically good and want to get along with each other.
Well, that's a nice thought. Interrupt the food supply for one week and watch how quickly people betray their morals and become animals. I'm not taking that chance, thanks.
And let's not forget the lessons taught by Russia regarding how quickly people can start to starve once the collectivists get their way. Lenin riled the people up to kill the farmers, and when the workers found out that more than just work was needed to grow crops, the cities starved. Of course, they blamed the new farmers again and so they got killed too. Thanks for posting!
I wouldn't say apocolypse, but then again, the world didn't end in Soviet Russia, either. I`d still feel better about my security with a few more guns and a few more boxes of ammo... You know, enough for me and the neighbors, were it to come to that. I wish I could agree that all people were good, but a few do very bad things in the name of the so-called "good".
Inflation will only benefit you if your interest rates are fixed. If they are variable, you remain in the same relative position that you are now. Plus, if you don't own a home, your rent will go sky high.
spudboy64 2 years ago
What would happen to property worth $100,000 today - and then Hyperinflation comes in?
Would it be worth more than $100,000?
salahuddin786 2 years ago
The value of the land is constant, but the value of the dollar declines. As a result, the house may be worth 100,000 in USD and, say... 2000 ounces of gold, but after inflation the house costs, say, 1,000,000 USD, but still 2000 ounces of gold. Commodities never increase in actual value, but currency based on a fractional reserve scheme fluctuates in value.
AtheistUndergrad 2 years ago
However, you have forgoten the fact that the interest rate can rise big time before the dollars starts falling. Pay those credit cards as soon as possible and if you can get a fix rate loan.
SilverRose09 2 years ago
Already taking care of that. Thanks for watching!
AtheistUndergrad 2 years ago
Your theory only works if your debt interest
is fixed.
So get fixed trenchcoat boy and quit flashing the old ladies at the bingo hall.
mx444bee 2 years ago
Working on it. Also, my fiance would probably not like it if I were showing my goods to anyone but her. Thanks for watching.
AtheistUndergrad 2 years ago
I didn't check the website you referenced, and am not sure exactly what you're pissed off about, but you are not going to be rewarded for accumulating major credit card debt no matter how you look at it. Even if by the vagaries of fate you pay your debts back in devalued dollars, you will still be paying a lot of interest to the credit card companies and you stand to have your credit limits reduced or eliminated entirely if you owe too much.
--Ken
kvackerman 2 years ago
I'm not encouraging incurring debt, and furthermore my point about feeling guilty if my debts are devalued by inflation is a hint that I am doing the responsible thing and paying back my debts, albeit slowly. I believe I mentioned that I was looking at a way to consolidate my debt, and in doing so I am looking for fixed-rate low-interest solutions to my (minor) problem. Alternately, I could just continue paying off a bit at a time until I graduate college and get a "real job".
AtheistUndergrad 2 years ago
No, if your debt is on high-interest credit cards you need to refinance it into a lower rate consolidation loan if you can, or even a lower-rate credit card, and then pay it off religiously, even if you have to do it slowly. And forget the guilt trip--even the government would like to pay back its debts to China, et al with cheap dollars. Problem is the yen, pound and euro have taken such hits recently that the dollar has gone up in value, a temporary anomaly I'm sure.
--Ken
kvackerman 2 years ago
Or, since I`m a student, I can get a student loan and use it to pay some of the tuition my parents are paying for, then they`ll pay me the same amount as the loan, and I use that to pay my credit cards. Then I`m responsible for my student loan debt, which is a lower interest debt. I`ve discussed this with my family, and this was viewed as the best solution. My debt is not that much, but it`s nearly equal to a year`s pay at my extra-low student rate, which is in the 4-digit salary range.
AtheistUndergrad 2 years ago
Your guilt would be justified if we actually lived in a free market society. We don't. The fact of the matter is, we live in world that is run by criminals. If you are prudent and you save your money you lose. I would recommend tangibles; guns, ammo, food, and whatnot. If you have to go into more debt to get these things so be it. What is coming will not be pretty.
quietdisdain 2 years ago
We may not live in a free market society (which is the problem, really), but I still feel responsible for my actions, regardless of external factors.
I also bought a couple of guns as an investment. I'd buy ammo too if I could find any.
AtheistUndergrad 2 years ago
Holy moley!
It's a sad state we're in if the first two things on your to-do list is to buy guns and ammo! Granted there is corruption in the world, but it has been that way forever and I see no indication of an upcoming apocalypse. You need to explore the planet more. People are basically good and want to get along with each other.
--Ken
kvackerman 2 years ago
Well, that's a nice thought. Interrupt the food supply for one week and watch how quickly people betray their morals and become animals. I'm not taking that chance, thanks.
quietdisdain 2 years ago
And let's not forget the lessons taught by Russia regarding how quickly people can start to starve once the collectivists get their way. Lenin riled the people up to kill the farmers, and when the workers found out that more than just work was needed to grow crops, the cities starved. Of course, they blamed the new farmers again and so they got killed too. Thanks for posting!
AtheistUndergrad 2 years ago
I wouldn't say apocolypse, but then again, the world didn't end in Soviet Russia, either. I`d still feel better about my security with a few more guns and a few more boxes of ammo... You know, enough for me and the neighbors, were it to come to that. I wish I could agree that all people were good, but a few do very bad things in the name of the so-called "good".
AtheistUndergrad 2 years ago