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> That's not how a reserve currency works. You borrow to fund growth and let inflation take care of the debt. Inflation might take care of the debt, but it is
by theli0nheart 2y ago
> That's not how a reserve currency works. You borrow to fund growth and let inflation take care of the debt.
Inflation might take care of the debt, but it is terrible for currency holders.
- exe34 2y agothat's why you get interest and above a certain amount of savings, you invest in the market to get growth. otherwise you buy land or gold.
- theli0nheart 2y agoThis is a strategy to protect against currency devaluation, but you still need to worry about interest rate risk (as do companies in the public markets, so investing in stocks isn't a sure thing). Unfortunately, for people who live paycheck-to-paycheck, there's not much to be done besides wait for wages to catch up. And in general, wages don't keep immediate pace with inflation. The net result is that lower-income workers suffer the bulk of the consequences of high inflation.