US National Debt Increased a Trillion Last 12 Months

[YinShuiSiYuan]

Question: What are all of you going to do when the dollar doesn't collapse? Some of you need to give me a date when it will collapse so you can admit you were wrong the entire time.

Well many people on these forums will look at the long term decline in the value of the dollar via inflation and will assume that such a trajectory will continue over the short term. What they generally do not understand is that the numbers make use of compound interest so even a small increase in inflation will have a great effect on the purchasing power on the dollar from 100 years ago

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[1714562569]

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[pattu1]

Question: What are all of you going to do when the dollar doesn't collapse? Some of you need to give me a date when it will collapse so you can admit you were wrong the entire time.

Well many people on these forums will look at the long term decline in the value of the dollar via inflation and will assume that such a trajectory will continue over the short term. What they generally do not understand is that the numbers make use of compound interest so even a small increase in inflation will have a great effect on the purchasing power on the dollar from 100 years ago

The question is whether inflation (however small) is a good thing because it erodes purchasing power.

[RobertDJ]

Question: What are all of you going to do when the dollar doesn't collapse? Some of you need to give me a date when it will collapse so you can admit you were wrong the entire time.

Well many people on these forums will look at the long term decline in the value of the dollar via inflation and will assume that such a trajectory will continue over the short term. What they generally do not understand is that the numbers make use of compound interest so even a small increase in inflation will have a great effect on the purchasing power on the dollar from 100 years ago

The question is whether inflation (however small) is a good thing because it erodes purchasing power.

Most economists agree that it is not possible to have the value of money stay exactly the same (meaning it is not possible to have exactly neither inflation nor deflation). If you have deflation then the economy will generally suffer because people will have incentives to not spend money unless then absolutely have too, which will cause a slow down in the economy. Most economists agree that a modest amount of inflation is a good thing for an economy