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You wrote deflation, but I think you meant inflation: with deflation the purchasing power of the $5000 borrowed would go up, not down.
by polotics 8y ago
You wrote deflation, but I think you meant inflation: with deflation the purchasing power of the $5000 borrowed would go up, not down.
- notarealaccount 8y agoEither word, this commenter, doesn't know too much about what they are commenting on.
- dang 8y agoMaybe not, but please don't post unsubstantive comments here. And certainly not personal attacks, which this dips a toe into. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- ChrisLomont 8y agoCorrect - my mistake. The point is the same however - sovereign debt does not work like household debt, especially when the debt is denominated in a currency the sovereign controls, as is the case in the US.