Re: Shorting the US dollar
when deflation occurs, how will this affect leasing rates and property prices? Inflation naturally raises prices but say the USD gets drops by 25%, would that mean that housing prices and rental rates are going to raise 25% to match the rate of inflation? i understand the theory that if i borrow money now and pay it back later i am paying it back with weaker dollars, but if borrowing now doesnt make me money through the process of inflation then what good is that?
if a deflation occurs, i have been told that the economy would collapse and real estate prices would drop. that makes sense to me but with deflation shouldnt the price of property stablilize to meet the rate of the us dollar? as a result, would real estate would initially plummet but rebound shortly after to make a gigantic profit for those who enter the market when it first crashes?
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