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run23456 run23456 46-50, M 4 Answers Jun 6 in Community

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the first to spend it.

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The first. Inflation results in loss of value to the currency over time.

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The first because at that point the money is at it's highest value. As it inflates more the money losses value.

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actually this is a good question... Heard 3 answers saying first and I guess its the one that its most likely to be chosen.<br />
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It is a tricky question.... How much at the end are we talking about? And how inflated is the market?<br />
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The last to spend the money will benefit from a depleted market. What that means is that as people buy less which will cause prices to go down (deflation). By the end of an inflation period people will be selling their goods and assets really cheap. <br />
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The ones that spend the money first will have to sell just to keep up with the ones that saved the money that are now able to buy because they've waited.<br />
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This behavior has been seen in many cases. (for instance the financial crash of 1929)

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but if you know you're currently living in a financial boom (therefore inflation) this means that you must spend the money first as your assets will increase with time.

that's why the questions... how inflated and when.

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Lets say it goes from 7 trillion to 15 trillion US national debt in 5 years. Who do you think will have the most benefit , the first to spend it or the last to spend it?

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that's ridiculous..... you cannot make a judgment on spending just on the national debt.

National debt does not have a direct relationship with inflation. It may influence it but it's not direct.

and is that debt for spending or for investment..... there's a difference.

The thing most people need to understand about market and economics is that it works in different stages. 6 I suppose. where the last indicates a crash. I heard we currently find ourselves in the fifth stage. which means the people who save more money will have the upper hand when the markets return to stage 1.
After WWII the World (in general) went back to stage 1. Mostly most countries suffered a baby boom, which means (+- in 15 years) there's more people working to support those people who can't support themselves. I just mention a few but there are many factors.

and the way I see it. If you're just thinking on spending...then both will have no benefit from anything. If you meant spending as investment, then it would be a different case.

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Lets start over, "Lets say it goes from 7 trillion to 15 trillion US national debt in 5 years. Who do you think will have the most benefit , the first to spend it or the last to spend it?".

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