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Topic:
Biggest economic news of the year
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theredkay1
Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
Biggest economic news of the year
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eodoll posted:
Whats the point of having a savings if theyre going to do this on purpose?
Savings should be loosely tied to inflation in the long run. If you save by investing in a company, the company will be on the receiving end of those higher prices and should pass some of back to you through dividends, capital gains.....demand for credit to expand in real assets should increase the demand for savings and give a slightly higher return if you are saving in bonds or money market accounts.
If you are saving in cash, this wont help you. The point of this inflation push is to make it less attractive to save in cash and more attractive to save in the form of real things.
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Date Posted:
1/1/00 12:00am
Subject:
Biggest economic news of the year
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Does any of this translate into a repeat of the last ten years, where the price of just about everything doubled or tripled while incomes actually declined?
Because that worked really well for us the last time.
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It is no measure of health to be well adjusted
to a profoundly sick society. - Jiddu Krishnamurti
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theredkay1
Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
Biggest economic news of the year
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Rosaria posted:
Yes I know, I wanted to clarify the Fed position so we're all on the same page.
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theredkay1
Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
Biggest economic news of the year
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B_Shinkicker posted:
Does any of this translate into a repeat of the last ten years, where the price of just about everything doubled or tripled while incomes actually declined?
Because that worked really well for us the last time.
The central bank doesnt control everything. The amount of oil in the ground, crop supplies, chinese currency manipulation, trade policy....there are alot of balls in the air.
Getting one thing right doesnt really ensure how everything else will work out.
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