Comment on Inflation surges to its highest since 1990parentComments−blatchcorn4yI see your point in theory but in practice:- poor people have less money to repay interest on the debt after buying necessities at an inflated price- interest rates rise following inflation which will increase debt repayment costs and likely offset any benefits gained from debt being inflated away- it is very rare for 'people' to actually issue loans, I imagine 99.99% of loans are issued by banks−noduerme4yNonetheless, it's a great time to take on debt. (if you can get a fixed rate)
Comments
I see your point in theory but in practice:
- poor people have less money to repay interest on the debt after buying necessities at an inflated price
- interest rates rise following inflation which will increase debt repayment costs and likely offset any benefits gained from debt being inflated away
- it is very rare for 'people' to actually issue loans, I imagine 99.99% of loans are issued by banks
Nonetheless, it's a great time to take on debt. (if you can get a fixed rate)