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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: copper000 who wrote (28415)3/11/2005 2:32:18 PM
From: patron_anejo_por_favor  Read Replies (2) | Respond to of 110194
 
Nope, same amount of dollars, only they're worth less...lesser amount of gold or whatever other "real stuff" you have available to repay it, so he's doing them a "favor" (provided the debt doesn't increase at a proportionate rate to the dollars fall, which is a HUGE if, and not very likely at all).



To: copper000 who wrote (28415)3/11/2005 6:41:38 PM
From: LLCF  Read Replies (1) | Respond to of 110194
 
<Can you please explain how a collapsing dollar will "wipe away grandkids debt" Wouldn't it take MORE dollars to repay the same debt?>

Assuming that our grandkids are the ones that will have to repay the national debt, it would be fantastic if the fed just printed them now and gave it to the bond/note holders. No muss, no fuss!

It really works for any debt assuming it's a somewhat fixed rate, it's clear that inflation wipes out the lender is it not?

DAK