Uh-oh
Hey folks.
Some interesting monetary info has come my way. I feel like I need to share.
In the last 12 months the money supply in this country has increased 120%.
In general, the effects of printing money (inflation) lags behind the printing 1-2 years, so sometime between now and one year from now, the effects should start showing.
What's the big deal you ask?
To put things in perspective, in the 1970's the US printed money for 2 years.
Now, once the effects of inflation started showing, the Fed had to raise interest rates to slow the effect of inflation.
The idea is to raise interest rates so that when you pay back money you owe, you pay more dollars back to the Fed in order to pull back in all those extra printed dollars so they can be removed from circulation. Now between the effects of inflation (your dollar buys less) and the high interest rates (you have to pay back more) it got pretty uncomfortable for a while in the 1970's. Ask your parents.
Back in the 1970's interest rates were hovering below 20%, and it wasn't fun.
That was caused because the money supply increased 13%.
Um, wanna take a guess as to what kind of interest rates would be needed to fend off hyper-inflation with a 120% increase??
Projections have it at a MINIMUM of 30-40%!!
Ow, ow, ow, ow...
Seriously people, please shore up what you can, pay off unsecured debts, and be super careful about investments.
Some interesting monetary info has come my way. I feel like I need to share.
In the last 12 months the money supply in this country has increased 120%.
In general, the effects of printing money (inflation) lags behind the printing 1-2 years, so sometime between now and one year from now, the effects should start showing.
What's the big deal you ask?
To put things in perspective, in the 1970's the US printed money for 2 years.
Now, once the effects of inflation started showing, the Fed had to raise interest rates to slow the effect of inflation.
The idea is to raise interest rates so that when you pay back money you owe, you pay more dollars back to the Fed in order to pull back in all those extra printed dollars so they can be removed from circulation. Now between the effects of inflation (your dollar buys less) and the high interest rates (you have to pay back more) it got pretty uncomfortable for a while in the 1970's. Ask your parents.
Back in the 1970's interest rates were hovering below 20%, and it wasn't fun.
That was caused because the money supply increased 13%.
Um, wanna take a guess as to what kind of interest rates would be needed to fend off hyper-inflation with a 120% increase??
Projections have it at a MINIMUM of 30-40%!!
Ow, ow, ow, ow...
Seriously people, please shore up what you can, pay off unsecured debts, and be super careful about investments.