European Tribune - Comments - That, which cannot go on forever, won't

That, which cannot go on forever, won't | 45 comments (45 topical, 0 editorial, 0 hidden)

Re: I bet you a lot of the debt is coming from (none / 0)

True, but real rates are not particularly low nowadays. 12% interest rates with 10% inflation is better for the borrower than 4% rates with 1% inflation.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Mar 30th, 2006 at 02:53:23 AM EST
[ Parent ]

Re: I bet you a lot of the debt is coming from (none / 0)

Do you mean inflation, or do you mean nominal income increases? You know the tendency is to blame inflation on salary increases, and for real incomes to grow below inflation. Plus, I am suspicious that inflation calculations are not tweaked to underestimate it.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Thu Mar 30th, 2006 at 03:34:49 AM EST
[ Parent ]

That, which cannot go on forever, won't | 45 comments (45 topical, 0 editorial, 0 hidden)

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