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The Rockefellers (and anyone else burying their money) don't earn the high interest rates, but higher interest rates for everyone else are necessary to push inf
by notahacker 5y ago
The Rockefellers (and anyone else burying their money) don't earn the high interest rates, but higher interest rates for everyone else are necessary to push inflation down to zero. Other generally wealthier savers will benefit from that compound interest, but anyone who borrows money will be worse off. That's a lot of productive poorer people's purchasing power reduced to preserve that of people who choose not to participate in the economy
- arcticbull 5y agoAnyone who borrows money is better off in an inflationary environment because your loans are denominated in the dollars over the year of issue, but you repay them in inflated dollars. This means anyone with a mortgage, a credit card, or any other kind of loan debt.