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I might need to clarify my previous statement.
Let me explain just how bad an idea of 4% inflation is over 17 years without a strong economy.
If you type into a calculator 100 x 0.96, then, x 0.96, and do it 17 times, you end up with 49.95868.
This means that if you put US$100 under the bed today, in 17 years time it will be worth US$50.
So what they aim to do, is to TAX (yes, inflation is a tax) everyone in the US 50% of what they have earned in their lives.
Since very few, if any, people have their entire net worth in a 6.3% term deposit, it's fairly safe to say that half of what someone owns, will evaporate.
This includes most people's greatest asset, their home. Expect not only inflation to depreciate property, but massive increases in numbers of properties for sale will lower property value even more.
You might say that we've averaged 2.8% over the last 10 years just fine. But we have strong exports. Also, we don't have 15% unemployment, or debts equal to our yearly GDP.
Expect the cost of your hobby equipment to drop...a lot!
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