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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (45031)	11/8/2005 11:32:54 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

last century the interest rate was 0.5% real. that's pretty good evidence that the yield more than keeps up with inflation "over time". you must believe the gov't stats on inflation. if this kind of inflation were happening people would be much poorer over time. I think they are - certainly in the last 20 years. The asset holders are far better off, since there's been tremendous inflation in assets. But J6P is getting smoked, as the cost of everything they buy is going up and their wages are going down. i think one must exclude the tax effect because the govt has shown it will tax all alternatives to cash as well, and often at worse rates as "collectibles". that's just another example of how people get screwed by inflation.