Apparently I wrote this in 2019 and never hit publish.
— cut here —
or at least it is unnecessary
it makes all the numbers artificially go up so you feel better about big numbers
it allows you to pay off your 30 year mortgage with cheaper money than today’s money. but you’ll notice the interest is paid up front in more expensive money, and the principal (which is not the banks money but saver’s money) is paid back in cheaper money.
these same people say, when the market is going up “look the value of your portfolio is increasing”
But when the market goes down they say “now you can buy equities more cheaply.”
They’re specifically not saying that when the market goes down, the value of your portfolio has gone down as well, or that, when the market goes up you have to pay more for the same equities.
it also means if you don’t get raises matching inflation you’re taking a pay cut every year
— cut here —
But while I’m on the topic… Apparently the standard inflation target rate of 2% that everybody seems to think is normal and good was first offered by the bank of new zealand. Go figure that one out.
I don’t get it. I mean I kind of do, it’s why people play the lottery.
If prices keep going up, then I need to make more money, so I switch jobs or do something on the side to make more money, because I feel like I’m making progress because I’m getting more.
No, you’re really walking or running to stand still.
But as above, hey, loan repayments are cheaper yada yada yada.
How about this. One unit of work yields X money. And with X money I can buy a gallon of milk. And next year if I want to buy a gallon of milk how about I pay the same X money, and I do the same unit of work to earn that.
What’s so wrong with that? It increases consumer confidence because now people can predict at least something about the future.
How about that. 0% inflation. What a crazy idea.