True, I also have a mortgage that is still in fiat and is slowly depreciating with inflation while the value of the property doubles every 10 year (in CHF) . But is this a lesson we want to teach our kids? Don’t produce anything real, let the state pay for everything and make debts you’ll never repay?
Wages didn’t really rise for as long as I have been working (over 30 years now), only investable assets did due to the excess liquidity added to the system and therefore the wealth gap widens. So did rents, health and other essentials living costs. My grandparents were still able to live well of their AHV (as house owners) today you are poor if you try to retire without 3a. Buy now pay later.
If you invest in productive assets and keep minimum cash – a small emergency fund - you barely need be in the monetary system at all
Whether you like it or not that’s the current system and it isn’t likely to change anytime soon. Many governments have debt of 100% of GDP so it is in taxpayers’ interest
Policy makers have been trying to avoid deflation and create some inflation for >10 years and only recently succeeded. Now they are just trying to slow it to a predictable level, they do not want to stop it
That’s the problem, there is no way out and the Europe will probably end like Japan in an economic
ice age with an old unproductive population. It’s either inflation or default.
Deflation was created by technology, cheap energy and globalisation, now these times have ended with the rising conflicts, babyboomers retiring and nuclear power plants beeing shut down left and right. I agree policy maker want inflation to get out of debt, still it’s a hidden tax especially on the poor.
Here a chart UBS vs SP500, I wouldn’t call that a confidence vote from the market. I will spare you a comparison to BTC .
I don’t want too attack anybody working there or in another bank. I was a UBS (and also CS, Raiffeisen, Postfinance,…) client for decades and my wife has been working for UBS for a while, my assitant worked at CS for nearly 20 years and started as aprentice so I know a bit about the culture and processes. I just think traditional banks are being drowed in old structures, false incentives, regulation and compliance and too big and old to adapt to todays technologies. At some point in the not too far in the future they will be fully replaced. My best guess is by DeFi which will be safe and easy to use in about 5-10 years and probably a CBDC account at the SNB.
I have checked my locked DOT’s and BTC today and even wasted a second to consider buying into to have even numbers, a clear indication that it’s just a pump and we should be at the top only going down from now on
Since 2011 when considering annualized returns, Bitcoin’s rate of return stands at 230%, which is 10 times higher than the second-best performing asset class, the Nasdaq 100 Index.
Over the same period, large US stocks experienced an annualized return of 14%, high-yield bonds saw a growth of 5.4%, and gold had a return rate of 1.5%.
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but what is this pump now all about?