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Deflation Primer

blog.tomevslin.com » 2008 » October » 5th » Deflation Primer

Tagged: unscientific economics

Deflation is the debtor's worst enemy just as inflation is the debtor's best friend. In inflationary times the value of the asset you borrowed money to buy goes up so quickly that you can always sell and come out ahead despite the interest you paid in the meantime. In deflationary time, the outstanding amount of the loan can easily become greater than the current value of the asset. Now you're … Continue Reading »

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