> Amusingly, thanks to the magic of compounding, that actually only implies a 6.5% average annual inflation rate. That's funny. I wanna add some perspective o

> Amusingly, thanks to the magic of compounding, that actually only implies a 6.5% average annual inflation rate. That's funny. I wanna add some perspective on how meaningless that is though. In 1623 most people you meet could not do exponentiation. In 2021 you can turn a muni bond ETF into 6.5% return by levering it ~2x. People harp about what you could and could not buy in 1623. Blah blah blah. That is a complicated argument to make about purchasing power. Its real limitation is the inability to model credit.