In Zimbabwe in 2008, prices of everything were doubling in a day. In Germany in 1923, prices were doubling in 4 days.
What happened to people with debt?
Wouldn't this mean the debt disappeared to nothing in a short while?
Or did interest rates take off even quicker?
Or did banks call in the loans? Why would a bank call in a loan? They wouldn't want the cash, they'd rather own the asset. Maybe they just take over the asset? But banks would bust first wouldn't they.
No idea really?
If things went really really bad, say global trade stopped, protectionism, oil embargo. I'd reckon barter would take over from cash. So you would trade stuff. No one would want cash, so people would barter trade instead. Hardest hit would be the cities. Rural areas would be way better off, as they were in the great depression.
Hardest hit people would be some of those highest paid now, company CEO's, IT jobs, lawyers, financial services, etc jobs with no use or worth in a barter system. Tradies would at least have something of value to trade with, they could build and fix things. People with land could grow food. The further from the city the more civilised it would get. Out in rural areas everyone would be trading cattle and sheep and horses and chooks, grinding wheat to make flour, and malting barley and brewing beer and wine, making biodiesel, Cutting fire wood.
See ya's.