Negative interest rates #interestrates #interestrates2023 #realestateinvesting #rentalproperty

Name: Negative interest rates #interestrates #interestrates2023 #realestateinvesting #rentalproperty
Uploaded: 2023-05-08T18:00:03+00:00
Duration: 46 s
Channel: Tim Hubbard
Description: Tim Hubbard explains how negative real interest rates let borrowers profit when inflation exceeds the nominal rate. He argues the official CPI…

8 May 2023 · 1 min

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Tim Hubbard explains how negative real interest rates let borrowers profit when inflation exceeds the nominal rate. He argues the official CPI understates actual inflation through weighting and hedonic adjustments, calling it a "CP lie," and notes inflation hit 9% officially in 2023.

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I want to just explain another aspect of inflation, and that is just the more maybe the simpler aspect of negative interest rates. So basically, if you can borrow money at below the rate of inflation, you're getting paid to borrow that money right out of the gate. Okay? So, you know, now inflation has been really high in the US lately, and usually high for the US world. And at one point it got to about 9%. Officially. That's the official rate. The official rate is determined by the Consumer Price Index, the cpi. And that is a complete lie. I call it CP lie, okay? Because that's what it is. It's manipulated through weighting, substitution and hedonic indexing.