15 lines
1.1 KiB
JSON
15 lines
1.1 KiB
JSON
{
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"HubID": "4739",
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"Date": "9/16/2024",
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"HubTags": [
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"External Platform Posts",
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"Future Map Forward Guidance",
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"Future Map"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "4739__Image_URL.png",
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"Summary": "<p>This is an interesting chart showing developed markets (like U.S., Canada, Europe) debt as a percent of GDP since 1800. Historically these debt problems gets solved through periods of elevated inflation, but lower interest rates (to keep government debt payments low), which is called financial repression. Here, savers (in the form of cash and government bonds) are the ones that bear the brunt of solving debt issues, where they are paid less on their savings than inflation. Inflation is in elevated prices for goods and services and labor, which reflects in the increase in the country's GDP. This is how debt gets inflated away, but savers bear the cost, not just in lower interest rates paid on their savings, but also because the currency devalues relative to other assets. A two-punch for savers. </p>",
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"Notes": ""
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} |