Post
Topic
Board Economics
Re: Lenders and borrowers during inflation
by
NotATether
on 29/08/2022, 08:41:34 UTC
👉👉Conclusion: People with good and profitable businesses can borrow money to boost their business during inflation. They will always be at the gaining side if the money is utilized well.
No no no, you got it all mixed up.

You should not borrow money during inflation because the decreasing value of he dollar will complicate the payments of installments and increases the risk of default.

Similarly, you should not lend money during inflation either, because every default brings you closer to insolvency.

You'd expect people to know this by now after the Celsius and Voyager debacle. But they haven't learned a thing.