Thoughts on inflation. Jubilee Fund update
My previous blog posts are on my website www.schooloffinancialfreedom.com
Thoughts on inflation
A lot of worries about inflation in the news. People are worried as we’ve moved from an era of historically low inflation to one of high. Interestingly, high inflation helps some people, namely savers. High inflationer leads to higher interest rates. You may notice that you’ve earned very low interest in your bank deposits in the last decade. With higher interest rates, savers will earn higher interest. Retirees have been earning almost no interest on their savings over the last 10 years. Conversely high interest rates hurt borrowers, as borrowing money has gotten more expensive. Lenders win, borrowers lose.
Also, if you locked a fixed mortgage rate and your salary goes up with cost of living increases due to inflation, you’re in a really good position because you’re earning more money while your mortgage stays the same. Your mortgage is getting cheaper in real terms.
Speaking of interest rates… here’s an update on the Jubilee Fund
Here’s a nine month update on the $100,000 Jubilee Fund, our attempt to eliminate credit card and turn it into reparations. In other words, turning debt into donations, debtors into donors. After nine months, we’ve sent $12,794.23 to the following direct aid funds:
Taking Ownership $3,884.18
Fires Igniting the Spirit $2,579.37
Black Oregon Land Trust $3,412.93
Portland Freedom Fund $172.00
Holla $1,263.74
Mother Africa $631.87
Immigrant Mutual Aid Coalition pdx $850.15
It’s pretty gratifying. A couple of donors are a month behind on payments. But this whole thing is running on trust. In fact, that’s the very idea: Trust replaces the 20% credit card interest payment. Nine months in, the experiment in community and grace continues.
Moving to Substack
I moved to Substack, because the Squarespace blog + Mailchimp newsletter was too cumbersome. I’m hoping this is a smoother way to communicate!
If you want to want to read the blog pre-2022, go to www.schooloffinancialfreedom.com/blog. Some good stuff there.