20% per year on everyday essentials, the dollar has lost 50% of its value since Obama was elected. Go ahead print more, it’s a stealth tax.
“Go ahead print more, it’s a stealth tax.”
Actually, it is boon to the wealthy who can borrow at 1.1 percent above LIBOR which is me.
I borrow really cheaply, buy an asset, inflation causes value of asset to go up which means I can borrow more at next to nothing and repeat.
It is called the carry trade, borrowing for zero and investing in dividend paying stocks yielding 2-3 percent.
I could do that, but when the carry trade starts to unwind, it is quite vicious so I am too scared to do a lot of it.