Comment on Iran laying 'sea mines' across Strait of Hormuz shipping lane

• 3abas@lemmy.world ⁨1⁩ ⁨day⁩ ago

  Well, as your spending power decreases because of everything getting more expensive, your mortgage is there relatively more expensive than it used to be.

  Even fixed costs are more expensive because your money is worth less and you need more of it.

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  • Korhaka@sopuli.xyz ⁨1⁩ ⁨day⁩ ago

    Fixed costs don’t change, £100 remains £100. As long as Farage doesn’t win with his retard party minimum wage is very unlikely to drop. It may fall relative to inflation, but that £100 debt repayment will remain £100 as it is fixed there.

    Inflation makes debts get smaller too. If we get hyperinflation for a few years I could pay off my 2023 house purchase for the cost of a 2028 chocolate bar.

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    • 3abas@lemmy.world ⁨16⁩ ⁨hours⁩ ago

      If you keep your job and don’t lose the house before your income increases to match hyperinflation, yes.

      Most people will find themselves unemployed or making monthly enough to buy a chocolate bar for a while.

      Has your income been keeping up with inflation the past few years? You think it will keep up with hyperinflation?

      Your mortgage is $1,000 a month and you earn $3,000 a month. When hyperinflation occurs, you owe $1,000 a month, food costs $4,000 a month, and you still earn $3,000 a month. Are you certain you won’t be in that position?

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      • Korhaka@sopuli.xyz ⁨13⁩ ⁨hours⁩ ago

        Pretty sure minimum wage has been beating inflation for a while in the UK. Hyperinflation was a bit of an extreme example and hopefully won’t happen of course.

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