What is so hard to understand here. You have $100,000 in the bank. You spent many years saving it. The dollar tanks and in a couple of years your savings only buys $50,000 worth of stuff. If things get really bad then it can be anything down to near Zero. It does not matter what people get paid. This is money that took years to save. To top it off the fed lowers, and the bank pays no interest on money that is already losing value. It is not good for anyone who played the game in an honest way. And yes you might be able to pay off your debt easier- If you still have a job under those conditions. But you will not be able to charge anymore because credit will dry up- and even if you could then the new prices of things will be out of reach for you. But anyone with savings invested in USD will see the value of there savings destroyed. Why? So that those with Credit can get a free lunch?
Hey, you could do a great job promoting me! Go see pro, to protect your hard earned savings. If you don’t NEED 100k in cash, why not invest it prudently, in a responsibly invested portfolio of investments, or real estate?
Revel, that is exactly why people should invest, protect against loss of purchase power. Fortunately, most people get that, and don’t put their life savings into savings accoutns, bank cds, or only fixed rate investments.
A good investment advisor typically will suggest a person to have at least 6 months worth of living expenses in cash, and enough money to cover the known capital expenditures they will have for the next 2-3 years. After that, some asset allocation of investments is the right thing to do.
Sorry but that's the way it must be.
Our economy runs on debt, the dollar is debt so we always need more debt to be growing.
And debt must be paid off in cheaper dollars otherwise it's deflationary and demoralizing as in the 30s.
The ponzi scheme 'is what it is' you can't change it.
You can fight the ponzi scheme only by keeping your wealth in hard assets.