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KPI 4. Allow wealthy people, institutions and governments to get cheap money without real cost of capital, stealing away all wealth from the common people.
by Geee 5y ago
KPI 4. Allow wealthy people, institutions and governments to get cheap money without real cost of capital, stealing away all wealth from the common people.
- xapata 5y agoIf inflation goes up as a result of low inflation rates, debtors benefit. Which is why all the bankers are complaining about the possibility.
- Geee 5y agoThat's what I meant. Common people and those with cash reserves are creditors who lose their money. Wealthy debtors buy assets with the cheap loan money, and are guaranteed to get richer without risk. Because of this, all valuable assets are moving to few hands.
- xapata 5y ago"Common" people in the USA don't have cash reserves. They are debtors, on average.
- deleted 5y ago[deleted]
- dnautics 5y agobanks don't care in the fashion that you imply, they're making money off of interest rate spreads, which doesn't change as the value of nominal amounts fluctuate.
- xapata 5y agoIf they didn't anticipate inflation correctly, their profits on past loans that are still active will be lower.