[supafamous]

Originally Posted by Gerbs

Having high inflation is dangerous though, if I know inflation is 3.5-8+% in 2023 to 2030, I'll buy out all the goods, gold and securities. Don't hold any cash minus emergency fund because it'll be worth less each year. All that increase in spending will jack up prices as demand inflates and supply can't keep up.

On goods that are low supply like hybrid cars, imagine holding Priuses into the next year just to keep up with inflation and a little more.

what's worse is if it average 6% over the next 8 years. Your $100 bill today will be $67ish dollars in 2030. $100K Salary > $67K salary.

Don't disagree there - high inflation (like the 8% we're seeing now) is a dangerous thing. I just suspect that if we get down to 4% that the pressure eases a bit and it's not a rush to 2% b/c at that point the downsides of chasing 2% from 4% are not worth rushing (whereas going from 8% to 4% is pretty important) and the bank says "We'll get to 2% in the next 36-48 months" (rather than in the next 6-12 months).

There's going to be some balance to be found as we get closer to 2% as the chase to it will lead to a lot of other costs and those costs increase as we get closer to 2%. Stagflation would SUCK.