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
Commentary • (0) Comments • (0) Trackbacks • Permalink

***Due to Spammer activity, comments have been temporarily disabled.
Please contact us by email if you wish to comment and we will enter it manually
rhailey(at)shotsacrossthebow(dot)com***

Commenting is not available in this site entry.

Quote

It is the job of government to protect its members from the actions of others. It is not the job of the government to protect its members from their own actions. That's the difference between being a citizen and a subject.

Bible Verse of the Day

“So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I will uphold you with my righteous right hand.”