Mr. Fri's picture

What happens to mortgages during high inflation?

Since the rules of our financial world are changing and I’m not too good at thinking through major changes in an economy, I have to ask the question to others who understand more than I about a currency collapse.  Let’s say I have a house in the US with a $200,000 mortgage.  If very high inflation hits the US, the dollar would lose a lot of value and gold would soar.  Let’s say the price of gold goes to $20,000/oz so I could sell ten gold coins and buy off the house.

investorzzo's picture


Last year, I observed silver’s past, or the time period covering thousands of years up until about 5 years ago. I tried to describe how silver was always  a highly desired precious metal, valued for its beauty and value in jewelry and ornaments and as money, much like its fellow precious metal gold. And, starting 100 to 150 years ago, how silver evolved into a vital and strategic industrial commodity. This transformation of silver into a modern industrial material was predicated upon its physical and chemical properties.

taco's picture

Were you alive in 1969?

The demoninations of circulating US paper currency and coinage have remained unchanged since around 1969 ($100, 50, 20, 10, 5, 2, 1, 0.5, 0.25, 0.1, 0.05, 0.01).* I was not alive at that time and do not have a solid understanding of the supply, demand, and pricing of goods during that time period. Therefore I have to assume that this range and gradation of currency values was adequete and perhaps necessary for people to transact daily business.

locklimitdown's picture

Venezuela devalues currency...for the most part.

Team Competitive devaluation scores another touchdown

Notice all goods need not apply

Talk about giving the black market a shot in the arm!

Many Venezuelans wishing they had owned gold

On Our Own's picture


I, personally, think Iceland was the victim of economic hit men who wan teed to force them into the EU.  But, if they use this to keep them out of the EU it leaves that theory in limbo.  What do you think will come next?  What effect could this have on currency trade?   for the article.

pinecarr's picture

Is value of US $ (via US $ index) getting positive spin?

Hi Folks-

  I am no expert in currencies, but more like someone in a foreign country trying to learn to understand (let alone speak) the language.  In following what is going on with the US dollar right now, I am seeing a change, and am  wondering what to make of that change.  So let me throw my obeservations and (possibly ignorant) speculations out there, with the hope of getting feedback from some of you others out there who have a better understanding of currencies (and manipulations of currencies).

Subprime JD's picture

How hyperinflation crept up on Germany- chart

Currency debasement showed up slowly for the first few years, and then hit like a train wreck in the end.

that1guy's picture

Is this an indirect example of the Carry trade on a BIG scale??

Hi all,

Quick question here. I just read an article about a  bunch of other countries selling bonds denominated in Dollars. This sounds crazy to me,  but when I read through it again, it seemed to hint at the carry trade, but I dont know a lot about that form of trade myself, let alone entire countries doing it....

Well, it wont let me copy and paste the link, but the article is called, 'European nations opt for dollar issues' published  14Oct2009

hucklejohn's picture

So where do we invest our money?

So the consensus on this site leans toward hyperinflation and/or U. S. dollar currency devaluation/collapse (although many are in the deflation camp) -- in short avoiding U. S.


It's Time To Prepare

Tuesday, October 6, 2009

As my long-time readers know, I consider my main occupations to be information scout, dot-connector, and analyst.  But as a side job, I also provide a decisive alternative to the mainstream economic propaganda machine, which is thoroughly dedicated to maintaining the status quo, regardless of cost.

So instead of building my case like a prosecutor, I am going to simply tell you where I am and what I'm thinking.

Everyone needs to prepare themselves for another round of economic instability, as the nation and world comes to grip with the fact that we are not going to enjoy a V-bottom recovery and that we are not going back to "normal"  -whatever that might be - any time soon.

We are about to enter another leg of the downturn, and this one will be even bumpier and more uncertain than the last.

It's time to prepare. » Read more