The conditions mean that debts cannot be repaid. Thats the fear. Not because the gradual increasing purchasing power of the underlying currency that actually benefits the bondholders.
Does deflation increase or decrease the amount of debt? 🤔🤔🤔🤔
I could literally do this all day lol its effortless to just be correct. It must be exhausting to need to constantly spin the argument and futily reconcile the inconsistencies and mental gymnastics of your position.
Does deflation increase or decrease the amount of debt? 🤔🤔🤔🤔
Neither. If you currently owe $100 (interest free) then next year you still owe $100.
I could literally do this all day lol its effortless to just be correct.
Of course it’s effortless. You are asking questions and not thinking for yourself. I’m the only one giving explanations and providing the correct responses.
Wrong, good try though. Yes, you owe $100, but each dollar is worth more, meaning you owe a greater “real value” (that’s an econ 101 term you should look up), or in otherwords, the debt increased.
The conditions mean that debts cannot be repaid. Thats the fear. Not because the gradual increasing purchasing power of the underlying currency that actually benefits the bondholders.
Take a walk. Have a think.
Does deflation make debt easier or harder to repay? 🤔🤔🤔🤔
Again, an econ 101 class would really help you
Deflation makes debt harder to repay and it rewards the debt owners with greater purchasing power.
This means deflation is actually a good thing for half of the economy (the bond holders). Not the monster it is always made out as being.
Again. The amount of debt is the worry, not the gradual change in value of the denomination.
Does deflation increase or decrease the amount of debt? 🤔🤔🤔🤔
I could literally do this all day lol its effortless to just be correct. It must be exhausting to need to constantly spin the argument and futily reconcile the inconsistencies and mental gymnastics of your position.
Neither. If you currently owe $100 (interest free) then next year you still owe $100.
Of course it’s effortless. You are asking questions and not thinking for yourself. I’m the only one giving explanations and providing the correct responses.
Wrong, good try though. Yes, you owe $100, but each dollar is worth more, meaning you owe a greater “real value” (that’s an econ 101 term you should look up), or in otherwords, the debt increased.
😂
Nope. The debt is still $100. There is no increase.
Being slightly harder to pay back is irrelevant if there are now only $50 of assets in the economy.
The inability to repay debt caused the great depression, not deflation.
Nope nope! You’re just denying deflation exists, now?? 😂 That’ll work. This is where mental gymnastics gets you. Sad!
Well, looks like I’ve won.
Why is deflation bad?