The Glade 4.0

Hm, really? I've never seen one that was. Certainly most cards are variable rate, but interest rates and inflation tend to be inversely related, so there's no de facto peg there either.

True, there are a number of variables involved, but I think the rule of thumb is still that higher inflation is generally a positive for debtors and a negative for creditors.

In general this is true, and was an argument against the Gold Standard back when William Jennings Bryan was arguing for more inflation so that farmers could pay off their debts more easily. That doesn't really translate too well to it being a positive in the average household though, especially when that debt is on credit cards.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

Most are variable, tied to Prime, or whatever. This is typically raised when inflation rises. So, your scenario only results in wealth redistribution if the interest rates remain stagnant, while inflation rises. They don't.

You have cause and effect backwards, I think. You certainly have the relationship between inflation and interest rates backwards, but that's understandable. What you are saying could have been perceived to be true in the past, because governments used to raise interest rates in an effort to curb inflation, because raising rates has an inverse effect on inflation, but governments have can no longer afford to raise interest rates without disastrous effects on their deficit/debt issues.

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Well Ali Baba had them forty thieves, Scheherezade had a thousand tales
But master you in luck 'cause up your sleeves you got a brand of magic never fails...
...Mister Aladdin, sir, What will your pleasure be?
Let me take your order, Jot it down -You ain't never had a friend like me
█ ♣ █

Low interest rates drives inflation. Yes, governments raise interest rates to curb inflation. As inflation rises, generally, interest rates follow.

Why? Inflation makes it harder for people to save. The people with a lot of money don't care, they get the benefit of the easing, but everyone else lose value on their savings. It's just one more thing that helps continue the growing difficulties for most Americans.

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"...the line dividing good and evil cuts through the heart of every human being. And who is willing to destroy a piece of his own heart?" -Aleksandr Solzhenitsyn

@Wwen: When people have less money, they buy less (lower demand), which in turn puts downward pressure on prices. Higher interest rates mean people have less available money, so inflation is curbed.

Except interest rates have remained incredibly low now for almost 20 years. There have been no significant changes to interest rates in the last decade. The Bank of Canada prime lending rate has varied between 0.5% and 4.5% in that time, and is currently sitting at 1.25%. Between 1979 and 1991, it varied between 9% and 19%, but it rapidly dropped off after 1991 and never ever really rose again, despite real inflation right now being worse than it has been in 30 years.

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Well Ali Baba had them forty thieves, Scheherezade had a thousand tales
But master you in luck 'cause up your sleeves you got a brand of magic never fails...
...Mister Aladdin, sir, What will your pleasure be?
Let me take your order, Jot it down -You ain't never had a friend like me
█ ♣ █

Taly:

Everything you've said has been compartmentalized. None of this exists in a vacuum.

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Ezekiel 23:19-20