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>investments like loans, which won't evaporate if hyperinflation occurs. Loans absolutely will evaporate if hyperinflation occurs. Lets say you give a $1000 lo
by jon_richards 10y ago
>investments like loans, which won't evaporate if hyperinflation occurs.
Loans absolutely will evaporate if hyperinflation occurs. Lets say you give a $1000 loan that pays out $2000 after two years and the value of the dollar drops 50% over the first year. You will still get $2000 in 1 year. Assuming the value of the dollar holds, you won't have made an actual profit. But what if the value of the dollar continues to drop? If you think its going to drop another 50%, you'd be better off selling your loan for $1000 now, in which case you've already lost half your value, assuming you can find a buyer.