Thread: Maxed Out
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  #10  
Old 03-02-2008, 03:39 AM
farmer_giles_of_ham farmer_giles_of_ham is offline
Come and Get Some!
 
Join Date: May 2007
Posts: 1,111
Given that there is 25% inflation, any "debt" will lose value at that rate- probably at least as much as any interest or costs due. There is no usury in this system- especially adding in how much 'bad debt' gets charged off, bankruptcy protections, any number of delays and 'outs'...

The problem is the instability of contractual amortization. If I am good for 100 this year then I am still good for the same 100 next year- which all this being equal is now 125, because of inflation. There is nothing to pay, its already paid.
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