Hello, Welcome to Known Unknowns, a newsletter that—just this one time—will give you free financial advice--a free lunch. Be skeptical. Inflation: dead or latent? Pension Geeks are different than most people because we spend so much time thinking about the long term. Pension obligations are made 50 or even 70 years in advance, and we often finance them today. So when people say things like “we don’t need to worry about inflation or debt because interest rates are low,” we get confused. This may be true for the next 5 or 10 years, but 30 years from now? What about 50? We are making obligations now that last for a long time, and therefore it seems risky to assume low rates and inflation will last 50 more years.
Known Unknowns
Known Unknowns
Known Unknowns
Hello, Welcome to Known Unknowns, a newsletter that—just this one time—will give you free financial advice--a free lunch. Be skeptical. Inflation: dead or latent? Pension Geeks are different than most people because we spend so much time thinking about the long term. Pension obligations are made 50 or even 70 years in advance, and we often finance them today. So when people say things like “we don’t need to worry about inflation or debt because interest rates are low,” we get confused. This may be true for the next 5 or 10 years, but 30 years from now? What about 50? We are making obligations now that last for a long time, and therefore it seems risky to assume low rates and inflation will last 50 more years.