The first line says precisely this is the assumption. The second declares the example about to be relayed to demonstrate the effect of unanticipated inflation a

The first line says precisely this is the assumption. The second declares the example about to be relayed to demonstrate the effect of unanticipated inflation as a "stupid example." Sorry that wasn't clear enough for you. Yes anytime you invest in an asset that is a total loser financing working for you or against you is a case of "how bad you lose."