4 ms·
Reduce ongoing liabilities (debt FYI, during the Weimer inflation, it was those who went into debt (ie, shorted the Mark) and bought real assets who profited t
by mynameishere 14y ago
Reduce ongoing liabilities (debt
FYI, during the Weimer inflation, it was those who went into debt (ie, shorted the Mark) and bought real assets who profited the most. There's no real good advice during a currency collapse for unsophisticated investors. Filling your basement with Jack Daniel's whiskey is as good as anything.
That said, a FRN crisis, if any, is many years off.
- rdl 14y agoThe difference is fixed-rate, vs. things which could adjust. It's all about being on the right side of optionality :) It's better to own a subsistence farm than to have something which requires purchasing market-priced inputs and to sell at long fixed-term prices. Similarly having long term fixed-rate debt (mortgage) is better in a market where rates go up than having to refinance every few years with short-term debt (or, say, rent, in a place where there's no rent control). But a disadvantage of owning vs. renting is that you can't move as easily to take advantage of opportunities. Reducing mandatory ongoing/recurring market-rate purchases seems like a win; usually that requires either spending capital now or some form of (ideally, fixed-rate) debt. Like borrowing at 3% to buy a fuel-efficient car or live close to work/transit is probably worthwhile, if you get 10-15mpg now and need to commute to work.