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And when debt is wiped out through bankruptcy that inflation remains.
by hdgvhicv 1mo ago
And when debt is wiped out through bankruptcy that inflation remains.
- JumpCrisscross 1mo ago> when debt is wiped out through bankruptcy that inflation remains Bankruptcy is deflationary. The same way credit creation makes money bankruptcy (and any other reduction of debt, including through repayment) destroys it. It's why financial crises were often followed by deflation in gold-based economies.