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?
Keep in mind any debt you still have will have really high interest. And even if you pay off your house, what will the taxes be?
It's criminal that you can spend your whole life paying on something to own but you will never own. Property taxes are criminal.
My neighbor built his house in 1972 and paid it off in 2002. He was living mortgage free for 20 years. Then he and his wife retired. A month after his retirement he found out he had brain cancer. His insurance lapsed for some reason and he basically spent his entire savings trying to treat his cancer.
Then he died and left his wife basically penniless, but she still had the paid off house. She got sick and was having a hard time selling the place because it needed some repairs and out of the blue she got hit with a huge property tax bill she had no idea was coming. I ended up paying it for her so she could sell the house and move into a retirement home.
Her house was up for sale and two kids broke in and were stealing shit from her, she went to go downstairs to see what happened and fell down the stairs and broke her hip and fractured her spine. The kids didn't even call an ambulance, they just ran for it. I found her the next morning when I went to make her breakfast like I always did.
She went to the hospital where she tested positive for Covid and she died two days later. The bank took the house and sold it to some Chinese company that flipped it for 100k more than she had it for sale for. It was bought by an Israeli company that rents it out for big bucks to some young couple that just moved here from California and do nothing but talk about how much they miss California and don't blow their leaves.
holy sh*t