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Maybe, if they "see" it coming and hedge accordingly. But in general, inflation works in favor of debtors against savers
by cwalv 3y ago
Maybe, if they "see" it coming and hedge accordingly. But in general, inflation works in favor of debtors against savers
- pixl97 3y agoGenerally when the debtor goes into bankruptcy they give up the asset. Some other 'wealthy' person buys up the for pennies on the dollar. So while a particular rich person loses, in general the wealthy come out ahead.
- cwalv 3y agoInflation enables debtors to default in real terms while still meeting their contractual obligations. They (er, we) end up paying debts back with money that's worth less, assuming we remain solvent in nominal terms (as the govt, currently a very large debtor, is guaranteed to do)