Categories
economics

Financial cognitive dissonance

I am buying silver bullion with my Amazon credit card rewards. Put another way, I am using the rewards I get for indebtedness to save long term.

 

Actually, this could make a lot of sense as long as bad inflation were a certainty. If you knew that the dollar would be devalued, it would make a lot of sense to wrack up debt in dollars to buy commodities (especially gold and silver) that will rise in value with a worthless dollar. It would be the best of both worlds, your debt would be reduced as inflation climbed, and your assets would climb as well. What could go wrong?

Well, the inflation might not happen, that’s what could happen. So for now I will still pay off the credit cards every month but use my rewards to sock money away…

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