4 ms·
Nothing would make me happier than to have my debt mean less which a falling dollar Unless you get paid in Euros or Yen (or even Canadian dollars), that doesn'
by dpapathanasiou 19y ago
Nothing would make me happier than to have my debt mean less which a falling dollar
Unless you get paid in Euros or Yen (or even Canadian dollars), that doesn't make sense.
- tocomment 19y agoPerhaps he's talking about inflation in general which would mean his income goes up but his mortgage stays fixed. Which is certainly good for him. How is inflation related to a falling dollar? I figured they were basically the same thing, but perhaps not.
- ivankirigin 19y agoYou're right, that's what I'm talking about. A dollar fall would hurt my purchasing power on imports and when I travel, but that is short term. My original point about PPP is that these exchanges adjust to match levels of wealth. There is little reason two countries with similar wealth should have different purchasing power on imports because of their currency. I don't know enough about inflation vs. currency fluctuations on comment on the differences.
- dpapathanasiou 19y agoInflation doesn't mean income goes up (unless your job contract guarantees inflationary increases), it means prices increase. So while his mortgage may be fixed, the prices of all other things will increase, while (more than likely) his income will stay flat. It's not a recipe for eliminating debt, so he shouldn't be cheering that scenario.
- ivankirigin 19y agoWhy would my income stay flat in the mid term? Yes, prices would increase, which would be bad. I'm not sure if I'd end up on top on balance.