|
The other problem is that they calculate it across the entire country. Nationwide companies have to sell to the coasts as well as the center part of the country. I'm not sure that the inflation rate made certain items in the communities get more expensive just because the dollar lost value
What about a home built in 1990? In Phoenix, Detroit, Cleveland, or San Francisco, the outcome on the decision to use 1990 dollars to buy a home would be different based on location. If you were to sell in 2011 and all move to the same area, some were benefited by the flood of cheap money, while others may have even lost money from saving at a lower interest rate than inflation.
I just wonder what would happen to our economy if we willed $14 trillion into existence overnight to pay off the debt? How much would prices rise? Imported goods and foreign travelers would get hit hard, but I'm not sure what other repercussions it would have.
And I don't have a problem with deflation. At least until I make more money and have it all in investments. I'm not sure deflation would be as bad as they think, some things just cost too much.
|