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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: Lizzie Tudor who wrote (92479)4/1/2007 3:33:24 PM
From: Doren  Read Replies (2) of 173976
 
A dollar that's only worth $.50 means that the debt is halved too.

In other words if you owe a million in dollars, you can pay it off with 1/2 million in real assets.

Or print 2X as many bills. Which is how Vietnam was paid off.

Of course this led to 20% mortgage loan rates but the people who traded their shrinking dollars for REAL estate got rich. Mostly those at the top although some middle class people made their bundle then too. They had to endure a decade or so of non liquidity but those at the top don't really need liquidity to pay their bills do they?

During the period of inflation corporations with real assets saw those assets appreciate but the cost of borrowing offset that so the market went sideways.

Gee all that is happening now too (!) except the mortgate rates which are coming.
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