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User Info Why we will experience deflation; entered at 2007-12-02 02:41:44
Adarak
Posts: 5465
Registered: 2007-07-19
I asked this in another thread but would like to revisit. If one has debt and deflation happens, isn't the purchasing power stronger and therefore better to hold the debt during deflation?

If you use up the cash to pay off the debt before the deflation, then you don't have that same cash that has more value during the period of deflation.

Or have I completely misunderstood what deflation is?
2007-12-02 02:41:44