HabitableZone

Off Topic » in reply to Well we all know something...

Re: Well we all know something...
ER — (archived)

I'm surprised it hasn't hit yet. Here's my reasoning.

Inflation destroys the value of cash, so people with savings will be wiped out, as will be people on fixed incomes.

However, people who own property, or capital, will still have something of value, as will people who own stocks and bonds. And people who finance their activities will make out because they will be able to pay their debts off in worthless dollars.

So inflation will be good for businesses, they don't have lots of free money, they have capital and loans. And inflation will be great for governments (after all, that's how we paid off our World War II debt). But it will be rough on people like me who rely on a fixed pension and a cash reserve for emergencies.

Yeah, I worry about inflation a lot, but the best hedge for me is owning stock, and right now that doesn't seem like a very good idea either, for different reasons. The only other thing I can do is make sure I'm out of debt and have all the hard goods I need to survive (car, house, furnishings, etc) and if I have excess cash, invest it in upgrading my property (home repairs, new appliances, etc).

But the nice thing about inflation is that except for the very well to do, everybody will be equally screwed.

What I can't understand is why hasn't inflation hit yet? Someone knows what they're doing, the only question is how long can they keep it up?

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