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Message: <blockquote data-quote="PeterBoss" data-source="post: 936544" data-attributes="member: 84865">As someone who lived a fair share of time in South America, I've seen this happen. I've also seen what 40-50% inflation means.This is EXACTLY how it goes down. They just scratch a bunch of zeroes from the former currency, call the new one a fancier name and, of course, profit from all the suckers that were holding either the currency or any kind of credit denominated in it.Which goes again to what we were discussing above: as long as you are able to hold anything different than the devaluated currency, then you'll be a winner. If you had outrageous levels of debt in said currency, you'll also be a winner as you will be able to pay it back at a heavy discount.For eg. If you had 1000 sh*t coins at 1 USD, you now have 1M Ameridollars and if you had a debt for 1000 USD, you now only owe 1 Ameridollar, which should be relatively easy to pay with your sh*t coins.You'll also be able to buy A LOT of defaulted assets from people, as not all debt is denominated in the now defunct currency and not all interest rates are fixed (specially inflation adjusted loans will be FUBAR).Having said all of the above, inflation at the beginning always boosts the financial markets, as people try to park their money anywhere other than their wallets. Eventually it hurts companies, as there is no real growth and they start 'underperforming' expectations.Guess we'll have to wait and see. As the saying goes:  markets can remain irrational longer than you can remain solvent.</blockquote>

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