Inflation doesn't exist (SORT OF...)

rogue_elements

"There's no 'real cost to student loans, as the interest's only ever as high as inflation. Eg, borrow enough to buy 100 weekly shops, and you only ever repay the cost of 100 weekly shops, as there's no impact on your purchasing power (though as prices rise the cash amount repaid is higher). "

Etc.

Just a note on something MARTIN always includes in these weekly emails.

Regarding inflation...
So this statement that Martin is making is highly erroneous and misleading and is a recurring theme here.

See the problem is making too many assumptions, but it doesn't always work that way. The reason why? You see, most shops actually DON'T put their prices up with inflation. Prices do not increase most of the time based on inflation, it just never works out that way.

Also the example scenario doesn't work out anyway, even if that was true...

If rates are going UP as prices are going UP, then it doesn't "BALANCE OUT" as martin is suggesting. It makes it better to pay it off sooner. Much SOOner.

So the rates are going UP as prices are going UP.
now yes it would work out balanced if wages went UP at the same "rate", but again it DOESNT normally work that way.

Martin you are living in a hypothetical scenario world where everything works out as it logically should, but it is NOT like that so please don't give misinformation. You can't just dismiss inflation as self-balancing for this kind of thing. BECAUSE In reality, its not even close. not even remotely close.