• jaykrown@lemmy.world
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    22 hours ago

    Unstoppable debt spiral. Basically this, the more people come to realize it’s never being paid back, the faster it will grow, and the faster it grows, the more people realize it’s never being paid back. It doesn’t really mean anything at this point.

    • AA5B@lemmy.world
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      21 hours ago

      Even if that were true, you can’t escape the consequences

      https://www.investopedia.com/ask/answers/061515/what-are-some-historic-examples-hyperinflation.asp#%3A~%3Atext=Hyperinflation+is+a+rapid+and%2Cits+currency+value+became+worthless.

      Is the U.S. at Risk of Hyperinflation?

      There would need to be a significant and highly unlikely drop in production and a massive increase in circulating currency for hyperinflation to occur in the U.S.

      You my think that paragraph on the us is encouraging, but consider today’s reality

      • disruption caused by general tariffs government investments, and the government reneging on commitments is quite likely to cause a sudden drop in production. There is a lot of recession talk
      • the current administration is trying to force the federal reserve to effectively print money, create a massive increase in circulating currency by cutting interest rates, total Y the opposite of what you need to do to control inflation
        • Laser@feddit.org
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          14 hours ago

          Surely there’d be no other downsides

          But yeah inflation outpacing interest is mostly good for the borrower.

      • jaykrown@lemmy.world
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        12 hours ago

        We can’t completely escape the consequences, but they can be mitigated. I don’t have a lot to lose. I don’t benefit from a 401k or social security. There’s a reason why investors are flocking to gold.

        Something that needs to change is how real estate is seen as an investment. It has broken the quality of life increase in the US by gatekeeping real estate, drastically increasing cost of living, while building nothing new to preserve investment. When you make housing an investment, it becomes in your best interest to stop building more to reduce supply and preserve value.