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Poor, because poor people are the only ones to be entirely in debt. Also everyone with a good income that has huge student loans. I think you've become very di

by hueving 11y ago

Poor, because poor people are the only ones to be entirely in debt. Also everyone with a good income that has huge student loans. I think you've become very disconnected from what the lower middle class is like if you think high interest will help them. The average savings account in the US is well under 10k.

d4rkph1b3r 11y ago
Ok, I guess we're doing this. I'll explain the basics of money to start. Money is a representation of your buying power relative to everyone else. So if everyone's money doubled, no one got richer. It's only when the percentage of buying power changes that anyone is really more or less poor relative to before. Ok, back to the argument... >Poor, because poor people are the only ones to be entirely in debt. Wrong answer. You missed the part where I said leveraged into assets. If you are 50,000 in debt, and I have 50,000 in cash, if the amount of money doubled out there... I'm the same amount rich, but you're less poor than you were! So if that was the end of the story, you'd be right. Poor people get helped out more than the rich. But that's not the end of the story... Now, let's say that 50k in cash went towards the down payment on a house worth 250k (20%). Again, to make it easier, we're imagining the amount of money out there doubles. Guess what? My asset just went up to 500k. I was leveraged into the growth. I just made out like a bandit. Are you less poor? Yes, but relative to all of us who bought houses, you just got fucked. (Because of inflation).
- hueving 11y ago
  >Ok, I guess we're doing this. I'll explain the basics of money to start. Don't behave like a child. It doesn't add anything to your argument. Also, you seem to be confused about the difference between interest rates and inflation. The value of money being cut in half is what's referred to as 'inflation' and it's not what is being discussed.
  - d4rkph1b3r 11y ago
    > The value of money being cut in half is what's referred to as 'inflation' and it's not what is being discussed. So your claim is that low interest rates aren't a cause of inflation?
    - hueving 11y ago
      It would seem that they aren't as correlated as people are led to believe. Ask Japan about how much they were able to boost inflation with low interest rates.

by hueving 11y ago

d4rkph1b3r 11y ago

Ok, I guess we're doing this. I'll explain the basics of money to start. Money is a representation of your buying power relative to everyone else. So if everyone's money doubled, no one got richer. It's only when the percentage of buying power changes that anyone is really more or less poor relative to before. Ok, back to the argument... >Poor, because poor people are the only ones to be entirely in debt. Wrong answer. You missed the part where I said leveraged into assets. If you are 50,000 in debt, and I have 50,000 in cash, if the amount of money doubled out there... I'm the same amount rich, but you're less poor than you were! So if that was the end of the story, you'd be right. Poor people get helped out more than the rich. But that's not the end of the story... Now, let's say that 50k in cash went towards the down payment on a house worth 250k (20%). Again, to make it easier, we're imagining the amount of money out there doubles. Guess what? My asset just went up to 500k. I was leveraged into the growth. I just made out like a bandit. Are you less poor? Yes, but relative to all of us who bought houses, you just got fucked. (Because of inflation).

hueving 11y ago
>Ok, I guess we're doing this. I'll explain the basics of money to start. Don't behave like a child. It doesn't add anything to your argument. Also, you seem to be confused about the difference between interest rates and inflation. The value of money being cut in half is what's referred to as 'inflation' and it's not what is being discussed.
- d4rkph1b3r 11y ago
  > The value of money being cut in half is what's referred to as 'inflation' and it's not what is being discussed. So your claim is that low interest rates aren't a cause of inflation?
  - hueving 11y ago
    It would seem that they aren't as correlated as people are led to believe. Ask Japan about how much they were able to boost inflation with low interest rates.