Warren_Buffet

 

*     *     *

https://www.theguardian.com/business/2022/jun/15/markets-brace-rise-us-interest-rates-federal-reserve-borrowing-inflation

                                        

                                                                           *     *     *

As an example, I invest in a 10 year bond which pays 3% per year cumulatively.

At the same time, I project inflation to be running at 2% annually. Waht is the

discounted return of my investment:

                                                                                 

                                                                                

I am actually beating inflation, but only making 1.18% per year cumulatively, and my money

is all tied up for ten years. It's all in what one wants...

                                                            *     *     *

Below, discounting GDP figures. Real GDP - as opposed to nominal - takes inflation

into account.

                                                    

                

Real GDP averaged 2% per year in those years. (There is also Net DP which discounts

depreciated assets!?)

                                                                      *     *     *

Working with Python on the Idle interface, one can output yearly numbers

from a formula:                         

                                              

This is enigmatic: Python and my Windows calculator start showing different numbers

after a while. Both my Mac and  an Android tablet wisely stopped short of giving

that many decimals: