17 Feb 2009 @ 9:42 PM 

In these times, cash is king.  In other words, nobody can be sure that they will be able to borrow money today or tomorrow.

But if you have some cash, and you can borrow, borrow full speed ahead.

Leverage is the way to future gain. 

There is not any way that inflation won’t happen going forward.

What does that mean?  Whatever you owe, the dollar will be worth less in the future than it is now.  As long as you have a job, you will be making more in three years than you are making now…for the same job.

If your debt is fixed, even if your interest rate is not, you will pay your loans off with future dollars that will be worth less than today’s dollars.

To keep it simple, say you make $25 per hour and you owe $100.  Right now, if you work 4 hours, you will pay off your loan in full (forget interest for now).

But since the government is, and will continue to flood (borrowed) money into the economy (the Stimulus), pretty soon you

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Categories: Financial Survival
Posted By: Jim Morgenstern
Last Edit: 17 Feb 2009 @ 09 42 PM

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