"Hard assets are always worth money. Real estate, durable machinery, etc. The inflation lets you erase the mortgages on them."

Inflation reduces the value of things priced in the currency, so the 'mortgage' is a financial product and so is worthless.

But try this: who is going to lend money to anyone to buy a home when the mortgage will be worthless in a few months?

Nobody!

The financial/credit system collapses so there are no real long term gains really.

My wording was awkward. If you start with a mortgage, and can hold on to the property or stuff through the crisis, you come out wealthy.

Yup.

You become 'more wealthy than your peers'. But in reality, it's crap for everyone. You become 'much less wealthy relative to everyone outside the country'.

Depends on what one values :)

You're country is probably going to rebound in ten years (mostly), but your personal assets aren't going away.

Actually the banks are slowly realizing that. They have made it impossible to open new savings accounts for instance.

> Inflation reduces the value of things priced in the currency, so the 'mortgage' is a financial product and so is worthless

Not true, the price will go up to track currency devaluation unless the price was pegged via contract or legislation. Even bread will see its price go up many times in day