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A comment on U.S. Inflation Accelerates to 40-Year High. Parent comment

Re:U.S. Inflation Accelerates to 40-Year High by voisin on Thursday February 10, 2022 @12:26PM (#30289531)
Still, 2% over 30 years when inflation is running at 7%+ is negative in real terms. So maybe not infinite, but the key point is that investors are rewarded for holding effectively anything when real rates are negative.
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Re:U.S. Inflation Accelerates to 40-Year High by danielmarkbruce on Thursday February 10, 2022 @01:43PM (#30290623)
If you are going to use inflation to turn nominal rates into real rates, you also have to adjust (reduce) the cashflows themselves. Ie, you discount real cashflow with real rates or nominal with nominal.

You'll find as you reduce the nominal cashflows by the inflation rate to arrive at real cashflows.... they stop being a cashflow pretty quickly.

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