there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

bracket creepers will fortunately mean less funding shortfall for public services

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

diddly-squat said:

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

If the high interest rates are associated with high inflation, than that won’t be true.

The Rev Dodgson said:

diddly-squat said:

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

If the high interest rates are associated with high inflation, than that won’t be true.

but will they still lose out the least

They’ll put up interest rates and continue borrowing money.

This means the gov can continue pumping money into doomed policies without completely wrecking the currency – its a transference of wealth by stealth.

Government money printing causes inflation ( and a depleted employment market ). You put up rates to stop people spending whilst pumping borrowed into gov projects / superannuation/ public service.

SCIENCE said:

The Rev Dodgson said:

diddly-squat said:

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

If the high interest rates are associated with high inflation, than that won’t be true.

but will they still lose out the least

If inflation is higher than the interest rate on deposits, they will lose out the most.

diddly-squat said:

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

Which is everybody.

mollwollfumble said:

diddly-squat said:

transition said:

there must be people that do well from such an environment

stuff like if you have a fixed interest rate loan the value of the loan decreases surely, but what you used the money for can go up in value

if you’ve sourced something to be supplied in the future on an agreed amount then what you get maybe is increasing in value while the money you pay is the same number value but decreasing in real value

subject generous stimulus during covid times previous, this surely is partly, even substantially what is fueling inflation today

and of that generous stimulus, did it help adjust to the realities of covid, or did it lend to a massive distortion, maladjustment

simply put, it’s people that have cash savings that benefit the most when interest rates rise.

Which is everybody.

To a degree.

If you’ve got $5,000 in the bank, you get a couple of bucks extra in interest.

If you have also have a $400,000 mortgage, your interest payments on that will rise to consume that small windfall and a whole lot more besides.

One small step forward, one big leap backwards.

ChrispenEvan said:

we thought wage increase and inflation was the only way Dirty Labor had to ensure bracket creep could fund increases in spending on public works

SCIENCE said:

ChrispenEvan said:

we thought wage increase and inflation was the only way Dirty Labor had to ensure bracket creep could fund increases in spending on public works

Inflation is principally caused by money printing by the government ( and also a reduced pool of workers – workers demand their own wages).

The 3 principles of gov are:

1 always make sure there’s unemployment ( in Australia it’s around 5.5 percent who MUST be unemployed)

2 a government must ALWAYS be in debt ( this means you can justify taking money away from people

3 Always make sure 1 and 2 are in force

What’s happening in America is that the dollar is no longer the reserve currency for oil sales and America has been heavily borrowing money for decades because of it.

The american gov can still print money by simply lifting interest rates – private borrowers have to give more money to the bank – thus curtailing inflation ie you hammer private borrowers of the dollar leaving the government free to continue printing money.

anticryptocurrencyists

Amusingly the gov has put up minimum wages

Its actually a new tax

By pumping up the wages the gov increase tax revenue for a short while and control inflation without changing interest rates – the new minimum wages sees the employers sacking people thus controlling further inflation. Normally they jack up rates to squeeze people and control inflation – by simply raising wages you throw more people out of work, collect more revenue for a short while and control long term inflation by creating more unemployed.

wookiemeister said:

Amusingly the gov has put up minimum wages

Its actually a new tax

By pumping up the wages the gov increase tax revenue for a short while and control inflation without changing interest rates – the new minimum wages sees the employers sacking people thus controlling further inflation. Normally they jack up rates to squeeze people and control inflation – by simply raising wages you throw more people out of work, collect more revenue for a short while and control long term inflation by creating more unemployed.

Big brain time

wookiemeister said:

Amusingly the gov has put up minimum wages

Its actually a new tax

By pumping up the wages the gov increase tax revenue for a short while and control inflation without changing interest rates – the new minimum wages sees the employers sacking people thus controlling further inflation. Normally they jack up rates to squeeze people and control inflation – by simply raising wages you throw more people out of work, collect more revenue for a short while and control long term inflation by creating more unemployed.

Wookienomics 101.