[extropy-chat] 'a process of non-thinking called faith' 2 (2)

[BillK]

On 11/25/06, Eugen Leitl wrote:
> And clearly, given the numbers like
> http://nationalpriorities.org/index.php?option=com_wrapper&Itemid=182
> ($345176937000, and counting) such investments into renewable
> energy sources would clearly have a much better ROI than killing
> a large number of people, and ruining a country already damaged
> by prior meddlings.
>
> And I don't have to remind people about numbers like
> http://www.brillig.com/debt_clock/
> (nevermind personal debt, which is some 85 k$/household)
> and that debt interest is an exponential function.
>
> Due to nature of fiat currencies with crooks behind the printing
> press and exponential nature of interest the growing gap between
> physical value and numerical value gets periodically readjusted.
> Given by the wideness of the gap, the coming readjustment seems
> to dwarf the 1930s one. I recommend bring your personal affairs
> in order soonish, or risk losing a lot. Not just wealth.
>

Concerning personal finances, if you expect a period of high inflation
and collapsing money, then it makes sense to borrow as much money as
possible and buy real assets. Rampant inflation wipes out monetary
debts as well as monetary assets. (Yes, interest rates will rise, but
you are making interest payments in devaluing money).  After the
holocaust you will still have your land, property, diamonds, gold
bars, whatever.

However, current news reports indicate that the slowdown
(readjustment?) in the US property market is not expected to cause an
economic collapse.
(But then they would say that, wouldn't they?).  ;)

BillK