Replying to Avatar BankSith

The quote translates to:

"I can only think of one plausible reason for Friedrich Merz's behavior: He does not believe that the #Euro will survive the next four years. Because if a currency reform were to happen again and twelve zeros were removed, the one who has assets instead of debts would be in a difficult position."

Professor Patrick Schüffel, HEG Fribourg, March '25

Study #bitcoin before you need to
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𝕞ptf 8mo ago

Credit instead of debt is the correct translation.

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BankSith 8mo ago

Credit is the ability to be able to borrow. Debt is an exact amount that you borrow. In that regard translation is correct.

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𝕞ptf 8mo ago

But it means in this instance a credit balance on account (cash). If you hold assets during an inflation cycle, usually you fair much better than holding cash.

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BankSith 8mo ago

The point of the quote refers to holding debt in a failing currency instead of credits (Guthaben) in the same failing currency. Holding debt (loans etc) is advantageous then as you get rid of debt for free

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𝕞ptf 8mo ago

Yes agree.