The "Miracle" Of Compound Inflation

Discussion in 'Economics' started by bearice, Apr 23, 2011.

  1. Inflation has the opposite effect of interest. So when it grows and interest rates fall the opposite effect of return will happen. I think we are entering a period of diminishing returns.

    It is likely to last for twenty of so years. Because of the aging demographic.
     
  2. marceck

    marceck

  3. inflation also reduces the real-value of current debt.
     
  4. Exactly... feels like "family planning"
     
  5. bln

    bln

    US Treasury is basically borrowing money for free. The foreign lenders belive they make a 1-1.5% return on the 10y/30y bonds, but in reality they get 0% as the real inflation is ~1.5% above the official numbers.
     
  6. Excellent article. Needs lots of discussions.
     
  7. BVM88

    BVM88

  8. So anybody and everybody is better off learning Chinese, Portuguese or Hindu and moving to China, Brazil or India respectively. It makes sense: coasting economy going through a crisis is not going to post yields. Emerging economies: nothing but yields.