The first warning of a coming depression. I often harp about money being lent out for less than the rate of inflation. If I gave you $20 today and you paid me back in a year at only 4% interest, I then go fill my tank with gas with the $20 and get less than a full tank, ie, I lost value while my money was lent out.
Seems simple enough. If you print endless dollars or lend money at ridiculous rates, savings plummets to near zero and the dollars don’t buy what they could, earlier. This rule of economics is pretty iron clad. Just because it doesn’t set in with a vengence immediately doesn’t mean it isn’t setting in with a vengence, it merely means the despotic rulers and the gang around him are madly manipulating the currency and the value of the collective estate and the mess is being shoved forwards in time.
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Go read the whole post. Good stuff.
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