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Originally Posted by blankall
As for increasing interest rates, that will most certainly not have a positive effect on personal debt. We'd just see more people defaulting.
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Not to mention dramatically increase the cost of servicing the enormous debt our governments have taken on. Which in turn would necessitate deep public spending cuts.
Quote:
Originally Posted by blankall
The most likely outcome is the further widening gap between the wealthy and the poor. If you already own stuff, it's going to get more valuable. If you rely on your wages for wealth, you are SOL.
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Who knew there would be a downside to government spraying out torrents of cash at a time when deficits were already at historic levels? But maybe this time will be different. Maybe for the first time since money was invented pouring made-up money into the economy will not lead to inflation.