4 ms·
Yes, but if they print money then your $100k will be worth less than $100k. This is why I asked about value. People saved to buy an apartment towards the end o
by Mirioron 8y ago
Yes, but if they print money then your $100k will be worth less than $100k. This is why I asked about value.
People saved to buy an apartment towards the end of the Soviet Union. When the Soviet Union collapsed they could barely afford a car for the saved money.
- cm2187 8y agoYou don’t need for the financial system to collapse for inflation to eat into these deposits. Even target inflation (about 2%) eats these low yielding deposits over the long term. And the never ending increase of public debt will result in high inflation at one point. My point being that if you have $250k in savings, it probably shouldn’t sit and melt on a savings account.
- JamesBarney 8y agoUsually a bank run will involve people hoardong money, and run away inflation is caused by people spending money as quickly as they get it.(is a rapid increase in money velocity and the other a rapid decrease). So these two forces should counteract each other.