> The inflation rate is a moving target and makes it very difficult to > know where you stand financially at any point in time. An asset could > be held and appreciate nicely over a period of time resulting in a gain > when sold, but if the inflation rate increases faster than the > appreciation rate on the asset the transaction actually results in a > lose of purchasing power. Even if the sale did result in a net gain > adjusted for inflation, by the following year, month, week, or day, > run-away inflation could turn the sale into a loser. >
There is also a side effect we experienced here with inflation. There comes a point when rich people start taking the money away from the country (legally or illegally), that worsens the picture. Another effect is that a lot of companies (some even made only with that purpose in mind) start taking heavy debt because they will be paying it with devaluated money, so the great scams and bankruptcies begin. Etc.Etc. ad nausea. _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
