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Old 04-22-2005, 11:26 PM
baselle baselle is offline
$ Saving HS Senior
 
Join Date: Feb 2005
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Default Re: Rising Inflation

I sure do think about inflation. Worry is a bit strong, but you have to remember that even at 2.5% inflation, $1 now has the same purchasing power as a $1.28 in ten years. It means that interest rate on your savings vehicles must keep up with inflation, and it becomes critical to move any super low interest rate accounts to anything better - an ING account, a CD, an I-bond.

If it makes you feel better, deflation is supposed to be economically worse. Think a nation of frugal people waiting, just waiting for prices to go down. We need the spendthrifts and the impatient to make us look good.
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