Subnostr

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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Discussion

𝕞ptf 8mo ago

Credit instead of debt is the correct translation.

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.

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.

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

𝕞ptf 8mo ago

Yes agree.