ok I feel stupid asking this,but here goes

[4plexowner]

yes, I forgot about taxes

the ‘gain’ on the 10 year investment is $350 as far as the IRS is concerned so the investor now owes capital gains taxes for his investing acumen

let’s see, lose 1.5% per year and owe capital gains taxes on $350

does compounding over 10 years bring us back to even in real terms?

[EconProf]

You actually pay state and federal taxes on the $350 annually earned for each of the ten years. Apply your marginal income tax rates to that to discover what your have left.
Capital gains taxes only apply to a gain when you sell something.

[EconProf]

You actually pay state and federal taxes on the $350 annually earned for each of the ten years. Apply your marginal income tax rates to that to discover what your have left.
Capital gains taxes only apply to a gain when you sell something.

[EconProf]

You actually pay state and federal taxes on the $350 annually earned for each of the ten years. Apply your marginal income tax rates to that to discover what your have left.
Capital gains taxes only apply to a gain when you sell something.

[EconProf]

You actually pay state and federal taxes on the $350 annually earned for each of the ten years. Apply your marginal income tax rates to that to discover what your have left.
Capital gains taxes only apply to a gain when you sell something.

[EconProf]

You actually pay state and federal taxes on the $350 annually earned for each of the ten years. Apply your marginal income tax rates to that to discover what your have left.
Capital gains taxes only apply to a gain when you sell something.

[Eugene]

[quote=4plexowner]so if I invest in a $1000 bond that pays 3.5% and I hold that bond for 10 years in an environment where monetary debasement (inflation for you plebes) is 5% per year, how much am I ahead at the end of those 10 years?
[/quote]

That would be a pathological and unstable situation. As you can see in this chart, in the last half century CPI growth rate only exceeded the 10-year yield twice, both times briefly:

[Eugene]

[quote=4plexowner]so if I invest in a $1000 bond that pays 3.5% and I hold that bond for 10 years in an environment where monetary debasement (inflation for you plebes) is 5% per year, how much am I ahead at the end of those 10 years?
[/quote]

That would be a pathological and unstable situation. As you can see in this chart, in the last half century CPI growth rate only exceeded the 10-year yield twice, both times briefly:

[Eugene]

[quote=4plexowner]so if I invest in a $1000 bond that pays 3.5% and I hold that bond for 10 years in an environment where monetary debasement (inflation for you plebes) is 5% per year, how much am I ahead at the end of those 10 years?
[/quote]

That would be a pathological and unstable situation. As you can see in this chart, in the last half century CPI growth rate only exceeded the 10-year yield twice, both times briefly:

[Eugene]

[quote=4plexowner]so if I invest in a $1000 bond that pays 3.5% and I hold that bond for 10 years in an environment where monetary debasement (inflation for you plebes) is 5% per year, how much am I ahead at the end of those 10 years?
[/quote]

That would be a pathological and unstable situation. As you can see in this chart, in the last half century CPI growth rate only exceeded the 10-year yield twice, both times briefly:

[Eugene]

[quote=4plexowner]so if I invest in a $1000 bond that pays 3.5% and I hold that bond for 10 years in an environment where monetary debasement (inflation for you plebes) is 5% per year, how much am I ahead at the end of those 10 years?
[/quote]

That would be a pathological and unstable situation. As you can see in this chart, in the last half century CPI growth rate only exceeded the 10-year yield twice, both times briefly:

[4plexowner]

“That would be a pathological and unstable situation”

and you think that we aren’t already in that situation?

again, Google “certificates of guaranteed confiscation”

[4plexowner]

“That would be a pathological and unstable situation”

and you think that we aren’t already in that situation?

again, Google “certificates of guaranteed confiscation”

[4plexowner]

“That would be a pathological and unstable situation”

and you think that we aren’t already in that situation?

again, Google “certificates of guaranteed confiscation”

[4plexowner]

“That would be a pathological and unstable situation”

and you think that we aren’t already in that situation?

again, Google “certificates of guaranteed confiscation”

[Author]

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