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The moment you realize debt is devalued over time and begin taking on debt to acquire hard assets, like anybody who is smart with their money, you are gaming th
by Geisterde 3y ago
The moment you realize debt is devalued over time and begin taking on debt to acquire hard assets, like anybody who is smart with their money, you are gaming the system. Its not to say people aren't legitimately creating value or building good businesses, but those businesses necessarily must pay the minimum required taxes to be competitive in the market against someone else who will. Politicians invest in stocks that their forthcoming policies will predictably pump. The whole of it all is gaming the system in one way or another. I'm a vet and I need to get back to spamming the VA to increase my disability benefits even though I feel the best I ever have now.
- dh2022 3y agoDebt is devalued in time when interest rates raise. The last couple of years aside, debt value has been increasing since interest rates peaked in late 1970s.
- Geisterde 3y agoDebt is devalued because the money is getting cheaper, I know in 20 years my debt will be easier to manage even though the payments in the nominal denomination of currency has not changed. Inflation is programmatic in a monetary system where currency can only be created through debt, if there werent inflation then every existing dollar would eventually disappear to pay interest to the fed, and there would still be outstanding debt. The practical implications of this are that even if there is a touch of inflation then it can cause a contagion even that shuts down the banks.