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Old 10-10-2015, 08:32 AM   #21
Recycles dryer sheets
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Originally Posted by marko View Post
So if the general consensus is that inflation will be near or below 1% for the foreseeable future, does that mean that the SWR of 4% gets recalculated to 5%-6% as 2% was planned to be eaten up by inflation?
I understand 4% SWR was back tested to last 30 years in all but the very worst economic cycles (with a few caveats and other assumptions). So if one assumes a less bad cycle for one's future, then yes, a higher WR is in order. The discussion about how Safe that is is endless.

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Old 10-10-2015, 09:03 AM   #22
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I just read a new article where the fed heads are talking about how watching europe use slighty negative rates has changed their minds about the danger of such policy, and they would consider it in the future. Scary stuff. We are already negative real, but to push nominal as well, a theorists dream come true.

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Old 10-10-2015, 09:23 AM   #23
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The Treasury can always issue trillion dollar coins if needed, no problem with currency debasement.
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Old 10-10-2015, 09:34 AM   #24
Recycles dryer sheets
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I agree with the statement that inflation often has no relation to a population grow. USSR last year of existence and many of newly independent states after the collapse had hyper inflation due to the economic collapse and /or foolish Government actions on monetary / economy policies.

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