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Is it really a no-interest loan? Or is it a negative interest loan? The value of the bank notes the government gave you, presumably by printing it, is less than
by adtac 6y ago
Is it really a no-interest loan? Or is it a negative interest loan? The value of the bank notes the government gave you, presumably by printing it, is less than it was than a few moments ago by the sheer presence of more of it. And it's probably safe to assume that they'll print even more, furthering decreasing your payment's value.
- lopmotr 6y agoIf you measure interest in the currency you're lending, like everyone else does, then it's exactly 0% interest. Interest rates advertised by banks aren't adjusted for inflation either.