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<p>[QUOTE="mikem2000, post: 1910440, member: 30574"]Really??? a technicality on "if" if you didn't mean it why even say it. C'mon, you are better then that.</p><p><br /></p><p>Now what the heck are you talking about. When a creditor charges interest, the whole point is to turn a profit, the amount of interest charged is calculated to cover the costs of infaltion plus a bit more. When a bank lend out 300K for a mortgage at 6% for 30 years, they recieve back 647k So sure it is debased, but it is over twice as much as was lent, there is true profit after inflation. So what is the problem? If they bank couldn't turn a profit after infaltion they wouldn't do. So where is the issue, Are you confusing normal mild inflation, with HIGH inflation. If so, I agree, but that is not what I am talking about.</p><p><br /></p><p>OK so now we know both creditors and saver are not hurt by inflation, so what your point?[/QUOTE]</p><p><br /></p>
[QUOTE="mikem2000, post: 1910440, member: 30574"]Really??? a technicality on "if" if you didn't mean it why even say it. C'mon, you are better then that. Now what the heck are you talking about. When a creditor charges interest, the whole point is to turn a profit, the amount of interest charged is calculated to cover the costs of infaltion plus a bit more. When a bank lend out 300K for a mortgage at 6% for 30 years, they recieve back 647k So sure it is debased, but it is over twice as much as was lent, there is true profit after inflation. So what is the problem? If they bank couldn't turn a profit after infaltion they wouldn't do. So where is the issue, Are you confusing normal mild inflation, with HIGH inflation. If so, I agree, but that is not what I am talking about. OK so now we know both creditors and saver are not hurt by inflation, so what your point?[/QUOTE]
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