16% over 7 years (its actually 8) is under 2% annually.
Inflation is always an annual figure. I would like to see the region wise numbers and I can find it, I am not asking you to, and the margin of error even in a national number is how much. I know they claim its accurate, but 2% even if it is that, is very low inflation. Extremely low. That explains the 6% long term interest rates a bit though. I’d think 6% interest means under 1% cos I think they like to pad it 5 point atleast, but maybe the bond market had become less risk averse from 00-07.
The discussion is waaaay of course though, I was trying to just point out that 6% ineterst implies 1% or less or I did say nearly 0 cos for a while interests were flirting with 5.5% on a 30yr fixed.
That was all.
Cool.
Cow_tipping.