tax "incentive" rebate went through!!

[talltigeguy]

Since there is nothing that we sane Americans can do, perhaps I will root for massive inflation. While I have good income, I also have large debt. Business loans, personal loans, mortgage, Tige, car......etc. Lets see some crazy a$$ inflation so I can pay off these bills quickly and cheaply.

I never thought about the upside of inflation...interesting thought. Maybe I better go get some loans out there for some stuff right now! Just not loans that will go up with the interest rates like so many people got for homes they now cannot afford.

"When the people find they can vote themselves money, that will herald the end of the republic." "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
Benjamin Franklin
The politicians found out that if they give away money, they can keep their power. People running around with their hand out to the government drive me nuts.
Ever feel like the lamb in this contest?

Amen.

[dogbert]

I have an idea. Let's all run for congress. We'll all be too busy riding and partying on the lakes and rivers to actually spend any of the governments money. Maybe we can even vote a heavy boat tax credit in for ourselves!

[Domsz06]

question,

How does recission help us with debts? I'm confused.

[eks]

question,

How does recession help us with debts? I'm confused.

Recession does not help you with your debts, Inflation in the other hand might, if you have your loan at a fix rate and your salary increases with the inflation.

[Jason B]

question,

How does recission help us with debts? I'm confused.

Interest rates drop!!!

[Domsz06]

so your saying take another loan out to pay off a higher one, got it

[sparky216]

question,

How does recission help us with debts? I'm confused.

Imagine that you bought your boat last year for 50k with payments over 15 years at a fixed interest rate. Your income is 100k last year, and most pay raises are adjusted for inflation. If we have 10% inflation this year then your pay raise will be 10% plus merit, so lets say 13%. This will occur year over year until we reach a devaluation period. So 10 years from now with inflation, your income is lets say 200k, that means over ten years it will take 100% more money to have the same purchasing power, but your loan is fixed at 50k with a fixed rate. That means your 50k is 100% cheaper than when your borrowed it. Same holds true for home loans, student loans....basically anything with a fixed interest rate.


FYI
I'm not an economist or anything, this is just how I see it. I may be wrong about this......

[Domsz06]

Imagine that you bought your boat last year for 50k with payments over 15 years at a fixed interest rate. Your income is 100k last year, and most pay raises are adjusted for inflation. If we have 10% inflation this year then your pay raise will be 10% plus merit, so lets say 13%. This will occur year over year until we reach a devaluation period. So 10 years from now with inflation, your income is lets say 200k, that means over ten years it will take 100% more money to have the same purchasing power, but your loan is fixed at 50k with a fixed rate. That means your 50k is 100% cheaper than when your borrowed it. Same holds true for home loans, student loans....basically anything with a fixed interest rate.


FYI
I'm not an economist or anything, this is just how I see it. I may be wrong about this......

ok, that makes sense, but your also assuming that you get a raise that equals inflation, which may or may not be true, correct?

It makes sense to me, he he he.

[sparky216]

ok, that makes sense, but your also assuming that you get a raise that equals inflation, which may or may not be true, correct?

It makes sense to me, he he he.

Most corporations and all government employees will have their pay adjusted for inflation. No one would be able to buy anything if we all have incomes that reflected 1950,1960,1970, 1980, or even 1990 salaries. It wont cost the company anything, remember that their costs and prices will also rise to the inflated prices. In effect it is a net zero, but you will benefit if you took loans out before the inflation occured.

[turbonine]

Imagine that you bought your boat last year for 50k with payments over 15 years at a fixed interest rate. Your income is 100k last year, and most pay raises are adjusted for inflation. If we have 10% inflation this year then your pay raise will be 10% plus merit, so lets say 13%. This will occur year over year until we reach a devaluation period. So 10 years from now with inflation, your income is lets say 200k, that means over ten years it will take 100% more money to have the same purchasing power, but your loan is fixed at 50k with a fixed rate. That means your 50k is 100% cheaper than when your borrowed it. Same holds true for home loans, student loans....basically anything with a fixed interest rate.


FYI
I'm not an economist or anything, this is just how I see it. I may be wrong about this......

Wouldn't it also cost more money to fix your Tiges then, so really its a wash?

Just kidding guys! It would cost a lot if my power wedge fell off. Would have to buy a lot of duct tape.

[Domsz06]

Most corporations and all government employees will have their pay adjusted for inflation. No one would be able to buy anything if we all have incomes that reflected 1950,1960,1970, 1980, or even 1990 salaries. It wont cost the company anything, remember that their costs and prices will also rise to the inflated prices. In effect it is a net zero, but you will benefit if you took loans out before the inflation occured.

well i mean my merit this yr was 4.5%

[Domsz06]

and I got lucky and got a raise on top of that. but not everyone did,

[sparky216]

and I got lucky and got a raise on top of that. but not everyone did,

Perhaps, but I think the majority did. I too got a 4.5% merit and a 3%standard raise.

[da.bell]

Wouldn't it also cost more money to fix your Tiges then, so really its a wash?

Just kidding guys! It would cost a lot if my power wedge fell off. Would have to buy a lot of duct tape.

rolmfao!!!!!!!!!!!!!!!!!!!!

[da.bell]

and I got lucky and got a raise on top of that. but not everyone did,

2.5% + locality

Somewhere between 2.75% and 3.3%... Not sure yet.