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?
My boss looked dumbfounded when my reaction to my most recent raise was "that barely even keeps up with inflation this year, is the company even trying to retain employees anymore?"
My company gave all the executives a 25% pay raise, and the Directors 20%, the Managers 15% and everyone else a 10% raise out of the blue last month as a thank you and a "please don't quit" raise.
A bunch of the low level workers created a petition and had a ton of signatures that asked the CEO to take the 25% raises away from the executives and distribute it to everyone below Manager level.
About 40 people got fired and none of the raises were changed.