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/biz/ - Business & Finance

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55607375 No.55607375 [Reply] [Original]

>https://www.investopedia.com/terms/d/debtdeflation.asp

You are here

>> No.55607408
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55607408

>>55607375
But if the value of money is also going up at the same rate as debt is inflating, whats the difference?
Like
>I borrow $100 today from u
>fast foward 1 year
>my debt is now $102(deflation) plus $5(interest)so $107
>but at the same time the value of MY MONEY also raised so im essentially paying the same as I wouldve paid anyway except for the $5 interest?
Does this make sense?
Debt deflations sounds like bulshit to me

>> No.55607421

>>55607408
i borrowed money to buy stuff that helps me sell you ice cream.

the price of all things gone down, your purchasing power goes up. i have to mark my ice cream down.

i dont sell more ice cream, i sell the same or even less.

the loan payments on my ice cream making equipment remains the same.

do you see?

>> No.55607700

>>55607375
Dxy is breaking down

>> No.55607711

>>55607421
But if the price of ice cream keeps decreasing overtime and and peoples purchasing power keeps raising then wouldnt people buy more ice cream then ever? I mean they can afford to

>> No.55607782

>>55607711
Think of it more like an aquarium with shitty dirty water

It makes the fish sick, so they eat less and some fish start dying

That means theres more food for the survivors but the survivors get sick too. So nobody really gives a fuck about the food anymore.

You would think that the more food you pour in the more rabidly the fish would swim to get all the fish pellets. How much ice cream do you really need?