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A comment on UK: Food inflation rises to 18.2% as it hits highest rate in over 45 years. Parent comment

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by klabb3 on Friday March 24, 2023 @02:55PM (#35293835)
Exactly this. And it’s not anecdotal either. In the UK, 75% of that new money goes to asset purchases[1], that’s likely a similar number in the US. Chronically low interest rates is a wealth redistribution program to the ones who get the biggest loans (guess who). The legend of the honest guy who needs a tractor or a fishing boat may as well be a mythical creature.

At least giving money directly to poor people is spent on things that can grow local economies. It is not perfect, but a lot more “stimulating” than giving money to institutions, corporations and rich people.

[1]: https://fortune.com/2023/03/20/is-federal-reserve-too-powerf...

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by DeathArrow on Friday March 24, 2023 @04:10PM (#35294766)
> Chronically low interest rates is a wealth redistribution program to the ones who get the biggest loans

What's the mechanism? A big loan is a big risk. With a big risk you can have either a big reward or a big failure. Smaller loans, smaller risks, smaller rewards and smaller failures. It's proportional. Why do you think of wealth redistribution?

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by ChuckNorris89 on Friday March 24, 2023 @04:48PM (#35295246)
>A big loan is a big risk.

Big risk are if you use that big loan to start a new business, but not if you dump it all on stocks and desirable real estate in hot or future hot areas.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by DeathArrow on Friday March 24, 2023 @05:43PM (#35296041)
Buying stock with borrowed money is a terrible idea. You can go under real fast.

Buying real estate seems sound only because real estate has some good returns last years. But real estate can go down real fast like in 2008.

Many people gambled money, be it stock, real estate, crypto. Some got very rich, some didn't, some went bankrupt, some will.

I don't believe in speculation and gambling. The market can always can catch you on the wrong foot.

I believe in hard work, well invested thoughts and patience. The results might not spectacular but I rather construct my future than gamble it.

For every new billionaire who got lucky there are 100 new beggars who had bad luck.

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