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One thing to keep in mind is that when values of an asset are inflated, the nominal price of the asset can change to match the underlying value of the asset (ie
by anm89 5y ago
One thing to keep in mind is that when values of an asset are inflated, the nominal price of the asset can change to match the underlying value of the asset (ie price falls)or the value of currency can change to justify the current price of the asset (ie price stays the same and the currency weakens).
I think people are biased towards assuming the first one whereas the are structural reasons relating to Ray Dalio's long term debt cycle argument why the latter is more likely at this specific moment even though historically the former happens more than the latter.
- carom 5y agoInflating the currency is much more likely. It is how the government will escape a crisis when they cannot lower interest rates any more. That said, I think land is finite and will keep pace with inflation.