Bob bought a house this year. He paid $500,000 even though it should've been $200,000. He's paid $100,000 and still owes $400,000. If you cause his house to be

Bob bought a house this year. He paid $500,000 even though it should've been $200,000. He's paid $100,000 and still owes $400,000. If you cause his house to be worth $200,000, as it ought to be, regardless of the method, he's going to default on the loan and you'll have screwed him out of $100,000 and (at scale) bankrupted all the banks. -- The gp actually make this clear and is grasping for alternatives to this scenario rather than advocating. So you reply is either ignorant or disingenuous. Edit: Gp's quote before your quote - "If you start raising rates, and stopping QE, you're not actually getting the money back from the people you gave it to, you'll just get a lot of businesses to close." The same clearly goes for individuals.