RE:RE:Just Thinking"Debt in no matter what form is the currency of slavery and he who controls the debt is master." Well said. The middle class and lower hold the majority of debt. They buy houses, cars, boats and hold huge mortgages. They own debt. The rich, on the other hand, actually own stuff... businesses, equities, stocks and bonds.
With a booming real estate market over the last 20 years many have been using their home equity as ATM's thinking they're richer than they think to fund more debt and build their so-called wealth. During inflation and rising rates, the cost of servicing debt goes up and gets harder to pay off. For many, the era of debt-slavery is just begining.
marketsense wrote: Its designed to overhype with the expectation to scare people out of consuming except
for neccesities. How else do you dampen inflation. At the end of the day, you have
crush peoples mindsets and get them to hold off on larger purchases, eg, cars,
housing, credit card purchases etc where financing costs become a bigger factor
in their decisions.
The other side of this is gov't debt which is in the $trillions and must also be financed.
This puts a squeeze or a limit on how high rates can rise before it becomes a "0"
sum game. My guess is not very much. " Debt in no matter what form is the currency
of slavery and he who controls the debt is master." Not my words but true nevertheless.