Will our debts also be converted to “new dollars”?
New dollars are just one stage during the destruction of the old and the conversion to the new economic system that will replace it.
How this will manifest in the end runs the spectrum from Mad Max (trading with bullets, often flying through the air) to a new gold standard to something like the old USSR, with an entirely new mandated currency enforced by law.
I think it’s wise to hedge in all directions. Food, ammo, gold, paper dollars at home, jars full of coins, all of it.
It’s too early to tell which will be your literal lifesaver. But one of them may be, if history is a guide.
Assuming the interest rate being charged on that debt doesn’t change to reflect the new inflation rate, yes. For fixed-rate loans, an increase in inflation helps debtors and hurts lenders. That’s one of the reasons banks like adjustable-rate loans.
Assuming the interest rate being charged on that debt doesn’t change to reflect the new inflation rate, yes. For fixed-rate loans, an increase in inflation helps debtors and hurts lenders. That’s one of the reasons banks like adjustable-rate loans.