Quote:
Originally Posted by bizaro86
I mean, the value of the money is independent of people's wages, housing prices, and whatever you happened to spend the money on. Once you owe it, having it become less valuable is a good thing.
It'd be like of you owed a debt denominated in orange juice (100 cartons) and Tropicana shrinkflationed them to 1.7L from 2L. Whether your wages go up or not, that still benefits the person who owes the orange juice and hurts the person who is owed the orange juice.
The amount of orange juice your work pays you is independent from that.
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I get your point. That in absolutely value the debt is going down due to inflation. However the interest rates on that debt is going up, as are other expense. Most people also carry their debt as mortgage debt. The price of real estate is falling.
There are very few people that have a stable serviceable debt, that isn't tied to a feeling asset.