What happens to debts during hyperinflation?
🗣️ DISCUSSION 💬
Just trying to wrap my head around hyper-inflation. If the US Dollar goes the way of the German Mark from 1923 and the USD is worthless what does that do to existing debts? If I could walk out onto the street and scoop up $500,000 from the gutter could I pay off my house? I'm sure the banks that hold the mortgages have safe guards in place to protect them. What am I not understanding?
Hyperinflation and debts equal a war. One that makes the debts go away. The owner of the money has to recoup their losses somehow.
To answer your question what occurred to rectify it? A war? Enslavement to a central bank or the International monetary Fund?[
This is not the first time hyperinflation has occurred. I believe in US it was in 1970-1990. It resulted in extreme gasoline prices and consumer goods including if I recall 18% introductory mortgage rate. Proudly offered by banks.
Zimbabwe and their hyperinflation created civil unrest and a parallel economy, ie black market.
DeutscheMark hyperinflation is to me not the greatest of what occurred, other than the bankers got their money back by funding WWII on both sides, Allied and Axis.
No real answer to your question. I look forward to others that chime in.