A little inflation is good. We all want to make a little more money, we all want to have our assets appreciate a little bit. And even though we will pay a little more for stuff, that’s good overall. High inflation on the other hand is terrible. Why? Because usually our incomes will not keep up with high inflation. Things will cost more and our incomes won’t increase at the same rate. So what happens is that we become poorer and poorer as inflation rate goes higher. Unfortunately that’s what we are experiencing now. If inflation keeps going at the rate it is, we will just suffer and become poorer as it progresses. Unfortunately the cure for inflation is higher interest rates and a slower economy. Which, will also make us poor. So for the foreseeable future we are all going to be poorer.
What do you think?
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