Suppose you have a mortgage of $100,000, at 7% interest in today's economy.
Now suppose, for some reason, the economy developed hyperinflation so that 6 months from now, it will cost $10,000 to buy a loaf of bread.
That means the balance of your mortgage costs the value of just ten loaves of bread.
Does that make it easy to pay off your mortgage?
In other words, is it good to have debt if you think hyperinflation is coming?
Of course there is the question of where do you get $10,000 to
buy a loaf of bread. Do people just starve during hyperinflation because
everything costs so much? Do wages rise too, or do wages
stay more or less the same while prices rocket up?
Now suppose, for some reason, the economy developed hyperinflation so that 6 months from now, it will cost $10,000 to buy a loaf of bread.
That means the balance of your mortgage costs the value of just ten loaves of bread.
Does that make it easy to pay off your mortgage?
In other words, is it good to have debt if you think hyperinflation is coming?
Of course there is the question of where do you get $10,000 to
buy a loaf of bread. Do people just starve during hyperinflation because
everything costs so much? Do wages rise too, or do wages
stay more or less the same while prices rocket up?