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We write off debt via two methods: bankruptcy and inflation. The latter effectively writes down the principal of all outstanding debt. If we hit hard limits to
by api 3y ago
We write off debt via two methods: bankruptcy and inflation. The latter effectively writes down the principal of all outstanding debt.
If we hit hard limits to growth it might actually look like a boom for a while, a very inflationary one where number go up a lot. In reality a lot of debt is being vaporized and prices are going up.
- JumpCrisscross 3y ago> latter effectively writes down the principal of all outstanding debt Emphasis on outstanding. The aggregate indebtedness doesn’t change with inflation; that’s only restructuring. (The new money is created with debt—loans create money.)