Inflation inevitably pushes up wages
which pushes up inflation
So although your cost of servicing the debt rises, so too does the money you have to do the servicing
But the debt itself remains fixed, and if inflation is at 20%, the capital value of the debt is shrinking pretty bloody fast
Posted By: Old Git on February 16th 2011 at 12:44:59
Message Thread
- "Inflation set to rise steeply" - 25% like in 1975? Bugger, my mortgage dint half rocket (n/m) (General Chat) - CB41, Feb 16, 12:30:51
- Au contraire, ceebers (General Chat) - Old Git, Feb 16, 12:40:21
- Yes but didn't interest rates go to 16% to combat the inflation? (General Chat) - CB41, Feb 16, 12:41:50
- Inflation inevitably pushes up wages (General Chat) - Old Git, Feb 16, 12:44:59
- Yeah I know but at the time, all you do is look at your repayments. (General Chat) - CB41, Feb 16, 12:58:11
- Inflation inevitably pushes up wages (General Chat) - Old Git, Feb 16, 12:44:59
- Yes but didn't interest rates go to 16% to combat the inflation? (General Chat) - CB41, Feb 16, 12:41:50
- Au contraire, ceebers (General Chat) - Old Git, Feb 16, 12:40:21
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