Earlier quoted context omitted.
This is a very layman's understanding, so take it with a grain of salt. If you have a ton of cash on hand when markets go to shit and interest rates go through the roof you suddenly have something no one else does: cash on hand that was traded when that dollar was worth less. When you buy property or stock with that money, you've effectively bought it at a hefty discount. When the markets and interest rates normalize…
Interesting. What you say is true, but there is an opposing force. If someone has cash on hand when interest rates spike, they can buy when everyone else has a much harder time getting loans. So this makes things appear cheaper because there are less buyers on the market. BUT the opposing force is the inflation that originally justified the spike in interest rates. That cash they are holding is simultaneously worth l…
Re: Food price hikes are no longer outpacing overall inflation
#71I agree with what you put here; I think there's also a "threshold" of cash on hand you have to have in order for it to be useful in the ways we're describing. It's likely a rather large sum.