posted on Jan, 1 2008 @ 10:19 PM
Lets make this easy.
Say you make 15 dollars an hour. The value of the dollar drops. The interest you will pay on what you owe will sky rocket. Your wages won't be raised
though. In fact, you will probably lose your job.
If the dollars value drops and then $1=$5 now, your rates would also increase. Futhermore, your pay would either drop dramatically or you would be let
go. The companies only have X amount of dollars. If the price of production just increased five fold, you can expect ALOT of people being let go. The
companies simply won't be able to afford that. They may even go bankrupt.
If you have 20,000 dollars in the bank, you will still have 20,000 dollars in the bank, but what you can buy NOW will only be 1/5th of what you bought
then. So now your college education would cost you 5 times as much. Everything would increase around 5 times in cost because the cost to produce it
will cost 5 times as much.
Yes you will still owe the same amount of debt, but unless you pay it off quick with money you already have, you are going to face a bad situation
Wages decrease or loss of job, increase it cost of goods and services, huge increase in interest on your debt all combine together to what we call
bankruptcy and eventually homelessness. Depressions are bad on every front.