5 ms·
"When the debasement rate is 10% and interest rates are 7%, the negative debasement-adjusted interest rate is a debt factory. It is easy for borrowers to make d
by Asmodeus 17y ago
"When the debasement rate is 10% and interest rates are 7%, the negative debasement-adjusted interest rate is a debt factory. It is easy for borrowers to make decisions that assume these rates will continue. If they end, the typical result is a recession. These kinds of dependencies make it very hard for politically sensitive authorities to end debasement, or even significantly reduce it."
From (http://www.safehaven.com/article-5205.htm http://www.safehaven.com/article-5205.htm) likely by the same author in a different mood...written in 2006.
- davidmathers 17y agoThe US dollar is about to collapse because of a simple economic fact that no one has the power to change or conceal. http://en.wikipedia.org/wiki/Millenarianism http://en.wikipedia.org/wiki/Millenarianism These people are exactly like those Christians who think the rapture is always just around the corner. Maybe next year.
- Asmodeus 17y agoActually, I was trying to direct you away from the sensationalist title, but hey, maybe next year.