Monday, April 6, 2009
This is the calm before the hyper-inflation storm
It simply isn't possible to borrow your way out of debt or to spend your way to prosperity. You know those guys hanging around street corners with cardboard signs? The ones who look like they might live in a cardboard box under a bridge? They tried it.
Now we're trying it on a national level. A government can't just print money without consequences. Ours has just dumped a couple trillion into the economy. The inevitable result of this will be a devalued dollar.
I have nine years to go on my mortgage. I was looking forward to paying it off and being out of debt. Now I'm going to refinance it to a thirty-year fixed rate and start all over again.
1. Mortgage rates are low.
2. There's a tax break for mortgage interest paid, and taxes are going no where but up as we foot the bill for the greed on Wall street and the deadbeats on Main street.
3. I'll pay it off in the future with dollars that are worth far less than they are now.