Letter Re: Does Future Inflation Justify a Higher Level of Indebtedness?
Sir, In reading the recent economic commentary on your blog site I have to wonder – if one is convinced that we’re to see a significant increase in inflation, then why get out of debt? Take a mortgage for instance: with decent credit it is now possible to refinance (or purchase) and get a fixed rate mortgage under 5% and rates will likely go lower before we’re done. With tax breaks and even normal inflation this is essentially free money. In an inflationary environment (which I don’t argue we’re in) it would make sense to keep this debt and instead …