'"> ');

Author Topic: Inflation erodes debt and the real value of savings  (Read 9288 times)

0 Members and 1 Guest are viewing this topic.

The Prophet

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 364
  • Country: england
  • Financial & Economics commentator
Inflation erodes debt and the real value of savings
« on: November 23, 2011, 09:15:50 am »
With inflation at 5% a nominal £1000 invested in a savings account paying no interest would be worth only £952 in real terms after a year.  So inflation suits borrowers as it erodes their debt.

Quantitative easing, printing more money does not create wealth, it reduces the purchasing power of the existing money in supply.

A calculated government devaluation of our currency.