Re:Blowing the Whistle on the Mortgage Bubble
by RickHull on Friday January 25, 2013 @10:54AM
(#5115944)
> > "governments are going to default.", "we live in a socialist world bent on confiscating savings (at the benefit of the state) using inflation"
> These are contradictory. Governments don't have to default if they inflate their debt away.
The reconciling position is that inflation used this way is simply default via other means. The holders of debt will not get back what they are owed in terms of purchasing power -- a nominal repayment rather than a real repayment.
> These are contradictory. Governments don't have to default if they inflate their debt away.
The reconciling position is that inflation used this way is simply default via other means. The holders of debt will not get back what they are owed in terms of purchasing power -- a nominal repayment rather than a real repayment.