F. George McDuffee wrote:
.. . .

Consider what happens when the holders of our public and private
debt realize they are about to be stiffed big time, e.g. the port
management fiasco. Anything that is of value and portable will
be purchased with the trillions of dollars we have so blithely
exported. Operationally this is hyper-inflation where the supply
of goods and services evaporates while the "money supply" grows
geometrically. Actually when you define money as a "medium of
exchange and a measure/store of value" its gone too.

It is at this point Harry Homeowner will discover who was
actually supplying the money for his home equity loan, and who
now owns the house....

All together now "Don't cry for me Argentina" ....
(See how the international banks behaved there when the ship hit
the sand a few years back."

Unka George




So Harry Homeowner goes ahead and pays off his $200K mortgage with two
days worth of take-home pay in devalued dollars. Inflation has no end
of problems attending it but to someone with a fixed-rate mortgage and
any sort of income, it's a godsend. For that matter, the same thing
applies to national debit in spades.


TK

--
At the 51st percentile of ursine intelligence.