Honest question: With inflation continuously rising, would it be smart to take on a little debt now?
With inflation rising, supply chains still being a mess which makes obtaining goods more difficult, and things only getting more expensive, it seems like a sound decision to take on a mortgage or a car payment now as opposed to in the near future when things will only be more difficult to obtain and more expensive. Inflation will outpace any interest on loan. Resale value of some of these big ticket items will only go up.
I'm not saying go out and buy unnecessary things, but I'm genuinely curious what your thoughts are on purchasing big ticket items of need or investment purposes now as opposed to 2 or 5 years from now.
According to Mike Maloney, a hyperinflation is often preceded by a rapid deflationary period. If that were to happen you risk holding some filthy bags. However, he and Peter Schiff have been calling a crash for 20 years, soooooo who knows.
Mike likes to say that it's rare that an economy swings in the direction in favour of the majority. I.e. if everyone is jacked to the tits on debt a deflation comes along and fucks everyone. If everyone is saving like a champ a hyper inflation comes along and wipes out everyone's savings. Things are so fucking crazy now maybe this doesn't apply.
In reality people have made bank over the last 10 years doing what you suggest. However, someone has to hold the bags someday. I prefer not to have debt so I don't have to think about it. Everyone that I know that succumbed to vaccine coercion was jacked up on debt. I prefer the freedom.
It's been said that Peter Schiff has predicted the last 11 out of 3 crashes.
Then again I was predicting this crash to have happened several months ago, I underestimated their ability to keep kicking the can. They built a bridge hanging off the cliff so they can keep kicking it even.