mvscal Economics 101
Posted: Thu Apr 13, 2006 5:48 pm
I charged $1,000 on my credit card last year and didn't pay any of it off, so I owed $1,000 (not counting interest).
I charged another $1,000 this year and still didn't pay any off. But...
because the rate of inflation was 3% I didn't actually charge $1,000. And here's what makes it really cool...even though I now owe $2,000 plus interest, because of inflation that's actually less than the $1,000 I owed last year!!!
I can keep borrowing $1,000 every year, and I don't have to ever pay anything back because with inflation the total amount I owe will keep decreasing.
Fucking RACK me. The banks are gonna love this.
I charged another $1,000 this year and still didn't pay any off. But...
because the rate of inflation was 3% I didn't actually charge $1,000. And here's what makes it really cool...even though I now owe $2,000 plus interest, because of inflation that's actually less than the $1,000 I owed last year!!!
I can keep borrowing $1,000 every year, and I don't have to ever pay anything back because with inflation the total amount I owe will keep decreasing.
Fucking RACK me. The banks are gonna love this.
