[FoRK] the crash

Brian Atkins <brian at posthuman.com> on Thu Jul 26 18:22:17 PDT 2007

In case of a real currency debacle, having plenty of debt denominated in that 
currency is probably a good thing. As long as you incurred the debt before the 
debacle-following hyperinflation, and you don't lose your job. As the inflation 
occurs, your wages in that currency should eventually increase significantly, 
but your debt payment stays the same, effectively deflating as a percentage of 
your income. So you end up owning the underlying asset for less work. The slow 
"normal" inflation over time in most countries is a gentle form of this that 
usually greatly benefits homeowners over the lifetime of a 30 yr mortgage.

Not that I'm a big believer in a crash. In fact I'll bet you $200 USD it won't 
happen :-)
Brian Atkins
Singularity Institute for Artificial Intelligence

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