In the fiat world, financial success is obtained through getting in debt. The richest man is not the one who works and accumulates capital, but the one with better access to the lending faucets.
Discussion
not sure i buy this....if you accumulate debt you must service the debt...
it is tough to service debt if you continually have bankrupt companies...so where does his wealth come from---accumulated assets sold out before bankruptcy?
Saifedean explains it better than I can in The Fiat Standard.
But it's basically possible to earn a positive result with a money that apparently loses money by:
- Securing high quality debt (as in, low rates, long terms, little or no collateral needed).
- Running a business that can update its prices with inflation easily.
- Buying real assets that will keep up with inflation.
On a micro scale: an Argentinian taxi driver might earn more money buying a car with an auto loan that actually running the service, because inflation shrinks his debt and makes the car increase in value in nominal terms.