Central NE | striptillr - 12/16/2009 12:41
At the moment and for the foreseeable future, there's nothing better than debt paydown, especially that darn consumer kind. Be very cautious in adding new debt. The credit mentality is still way too pervasive in this country. If you're debt free, good for you....keep it that way.
I agree on paying down consumer debt, and all debt on rates subject to change. But fixed interest debt used to buy appreciateable assets would be smart debt at this point. If you really think inflation tomorrow will outpace interest rates today (carry trade anyone?) then you might as well let inflation pay off your assets.
Say you have $50,000. Buy 42 oz of gold coin. Borrow 100,000 to purchase tractor. Use gold as collateral (and payment insurance) Get fixed rate of 6.5% for 7 years.
7 years later used tractor with 4200 hrs on it is worth 42 oz of gold which is now equivalent to $500,000 (yes, that is 500,000) plus you still have 42oz of gold ($500,000) and 4200 hrs of work done on a nice tractor.
What do you think?
Edited
Edited by Hayinhere 12/16/2009 22:19
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hyperinflationists- where would you stick your money
