Shots Across the Bow

A Benefit of Hyper Inflation

In the interest of fairness, I do need to point out that there is one benefit of hyper inflation. If you owe somebody a lot of money, inflating your currency means that you're paying them back with dollars that are worth less than the ones you borrowed.

For example, I borrow $100 from you today (Don't worry,I'm good for it) and I promise to pay it back in a year. During the year, hyper inflation sets in and the dollar's value is cut in half. When I pay you back, the value of the $100 I give you is only $50.

That's good for me, not so much for you.

Posted by Rich
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