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Originally Posted by blankall
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.
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Unless they are going up in tandem, either interest rates outpace inflation or inflation continues to outpace interest rates. There is are net winners in these situations purely from a credit spread perspective. Of course assuming the inflation metric is a good determination of purchasing power which varies individual by individual based on spending habits. I personally believe the centrals have gotten to the point of putting to much focus on inflation and ignoring other metrics such as unemployment, job vacancies and other important growth metrics.