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  • #91
    Originally posted by Lordosis View Post

    But how often do we see people who take on debt to invest in themselves for say medical school but then hang onto that debt to maintain a higher lifestyle. Money is fungible. If you have debt anything you spend is on credit. Sometimes is is a wise choice but most people do not make a choice. They just spend and do not think about it.
    Yes. This.

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    • #92
      Yeah it’s a gray area for sure. It comes down to intent and the save 20% rule for me.

      Once you calculate your cash flows, save at least 20% towards retirement, you spend the rest however you want. Taking on debt to not save 20% and spend more on lifestyle than you make? Bad. Taking on debt to build assets? Potentially risky but not always bad.

      Anyways, off topic from inflation in most ways so can always discuss in a new thread if needed.

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      • #93
        Originally posted by Nysoz View Post
        Yeah it’s a gray area for sure. It comes down to intent and the save 20% rule for me.

        Once you calculate your cash flows, save at least 20% towards retirement, you spend the rest however you want. Taking on debt to not save 20% and spend more on lifestyle than you make? Bad. Taking on debt to build assets? Potentially risky but not always bad.

        Anyways, off topic from inflation in most ways so can always discuss in a new thread if needed.
        I agree we can move on from harping on debt but is it really that far off the topic? What exactly is inflation? It's when there is too much money in the system. Despite everybody talking about the government printing money this is not where the money is coming from. The money is coming from debt. Money is created when people buy things on credit and take out loans that is the creation of money. Rates being as low as they are makes this process happen much more frequently and at a higher magnitude increasing the amount of money in the system.

        Good point about the student loan freeze. Over the past year I have heard one person who said they are still paying their loans and using this as a chance to get ahead. Everybody I'll say I've talked to is just spending the money on other things. I'm sure some financially wise folk are putting that money into investments or using it in a way that would yield better results than paying a 0% loan but I don't think the vast majority of the people spending it are following this thought process.

        I am sure there are some crunchable numbers out there about how much money is going to come out of circulation when people have to start servicing these loans again. I'm sure it is going to impact a lot of people's disposable income.

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        • #94
          Yeah it's interesting/scary how much liquidity and money has been printed. Stock markets? All time high. Real estate? All time high. Crypto? All time high. Gold? Stable this year (sorry Crixus).

          I'm with you thinking that the average American likely spent the money instead of paying off debt or investing. But with everything at all time highs, it would seem that a fair amount of people have invested/speculated as well.

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          • #95
            RIP Dollar Tree

            https://www.cnn.com/2021/11/23/inves...ion/index.html

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            • #96
              Originally posted by Lithium View Post
              They could easily change their name to Dollars Tree. This is a result of forward thinking when the company was first created.

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              • #97
                An interesting thought to the concept that inflation is psychological-- there is much to blame about forward demand and supply chains causing increases in prices. But, on the flip side, because inflation is in the front of consciousness, it allows retailers to increase prices without the fear of being called out by competitors- regardless of what input costs are (we assume there is increased input costs, possibly in the form of labor costs, or simply the carry cost of inventory, etc etc etc).

                As I've said before- the concept of increased rate of inflation can only be debated among those it least effects. Those that are truly effected by it are more worried about feeding their children something decent, keeping the lights on and a roof over their heads.

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                • #98
                  it’s because of those greedy poultry producers silly

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                  • #99
                    inflation is a global issue, this is not U.S. specific.

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                    • Originally posted by jacoavlu View Post
                      it’s because of those greedy poultry producers silly
                      So far I’ve seen the government (mainly Liz Warren) blame Big Oil, Big Poultry, etc. I wonder when she’ll blame Big Government.

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                      • Originally posted by CordMcNally View Post

                        So far I’ve seen the government (mainly Liz Warren) blame Big Oil, Big Poultry, etc. I wonder when she’ll blame Big Government.
                        lol. my favorite game, stupid or liar

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                        • We wouldn't have an inflation problem if the rich would pay their fair share.

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                          • Originally posted by nephron View Post
                            We wouldn't have an inflation problem if the rich would pay their fair share.
                            Is this tongue in cheek?

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                            • Originally posted by CordMcNally View Post

                              Is this tongue in cheek?
                              Yes, although I do think people who make more then me need to pay more in taxes.

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                              • Originally posted by nephron View Post

                                Yes, although I do think people who make more then me need to pay more in taxes.
                                Any specific number or just 'more'?

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