Well then they would have to come up with 500 dollars or so eh? And show up to the lawyers office and fill out paperwork - they always tell me hard work pays off later - but laziness pays off now - too lazy to file bankruptcy.
Shades, how come you are assuming that, people dont have $500 to pay for filing bankruptcy, but have enough money to pay for the debt with devalued currency? Also, you are assuming, people are lazy to file bankruptcy but are energetic to pay the debt with interest. You have to be more serious than that.
BTW, not filing bankruptcy and not paying debt/interest is ALSO bankruptcy (may be "unofficial" bankruptcy).
Also, you and Chromatic keep making the assumption that Ben will fly with his helicopter money. And I've told you many times, by deflation, I mean credit deflation and not CPI becoming negative. Now, if CPI is positive, will Ben still fly his helicopter money? What if $ devaluation ALONE creates inflation inspite of credit bust? i.e $ devalues 30% and credit falls 20%, it is credit deflation (20%) and yet, price inflation will be positive. In this scenario, why would Ben bring his helicopter. If you dont believe in this scenario, then you will never understand deflation.
Herb and Maudlin is saying people are taking less debt huh? How can that NOT mean deflation? It is the classic argument for deflation!!! People dont take loans from banks to load up debt - this is exactly what causes deflation. I'm not sure how people can see this as prelude to hyperinflation.
According to Minsky, if people stop taking less debt, it implies that the ponzi scheme will come unravelling. For hyper inflation to happen, people should take more and more debt. That is the ONLY reason why people say, hyperinflation ends in deflation. Even puplava says, it is hyperinflation first and then deflation. i.e at some point in hyperinflation, debt stops flowing. And hence results in deflation. |
