Can some one explain to me...

[Salodin]

Some time ago, I think it was archi, explained why the us borrowing money now was good, because of sub inflation rate or something. Can any one elaborate? Trying to explain this to some one, but don't know all the specifics. And the dude just went to australia or something.

[Andalusian girls]

the idea is that if you borrow money now and pay it off slowly over time with an interest rate that is below the inflation rate you will actually wind up paying a smaller amount of the principle as the true value of the principle will devalue over time as it remains static and its purchasing power decreases as inflation rises. the money you received escapes this inflationary devaluation as you, typically, spend it then and there when its purchasing power is greatest.

[Salodin]

ty

[Andalusian girls]

de nada

[test123]

You can practice this at home, just get a bunch of credit cards to have one pay off the other. You can keep this up forever.

[Salodin]

Not quite, but nice try though! See you again tomorrow.

[Cream Soda]

Now is the time if you want to buy a house or car

[Seraph]

You can practice this at home, just get a bunch of credit cards to have one pay off the other. You can keep this up forever.

You used to be able to do that, but the companies got wise and usually limit the number of balance transfers now.

[venikk]

Some time ago, I think it was archi, explained why the us borrowing money now was good, because of sub inflation rate or something. Can any one elaborate? Trying to explain this to some one, but don't know all the specifics. And the dude just went to australia or something.

If inflation is 2% and you can borrow at 1.5% like banks can, you can literally be paid ~.5% to borrow money. Since we're not banks we have to pay 6-15% interest, so I'd say borrowing money still isn't worth it from this perspective. However if you measure inflation the same way we did in the 70's when we had the "great inflation", our inflation is just as high as it was then. So from a classical perspective borrowing money is in that - get paid to do so - zone. You could theoretically borrow money and buy something with stable value and make money doing it.