why deflation would be a disaster , page-12

"Capital amounts, at close to zero coupon bonds?

I thought - we are having 'what can not be repaid'...arguments."

Errrrr ... yes. It is the capital that needs to be repaid. In an inflationary environment, the capital is whittled away as the value becomes less. In a deflationary environment, it becomes more. Hence why cb's cannot tolerate deflation.

Could you give me a link for the aussie private debt default falling? I couldn't find it on google. TIA.