"And Dopey who think that inflation can't grow."Which part of...

"And Dopey who think that inflation can't grow."

Which part of the inflation maths you have problem with?

a) nominal?
b) real?

nominal>real = good for debt holders because their debt is being eroded by inflation.

One borrows at nominal rates of interest from the bank, but if inflation is running at 2.7%pa and real is 1.3%pa, than the value of the is being eroded at faster rate than if it the reverse was true. This is the case now.

"well, if inflation hits 10% then you will see 15% interest rate easily"

Make up your mind about what you post:

'We are in a bubble and it will crash'.
That means that property prices will crash = which means nominal interest rates go to ZIRP = which means real interest rates stay high. Harder to repay existing debt if real income doesn't increase. IT IS ALSO KNOWN AS DEFLATION.

Where is 'high inflation' comes in the bubble theory and economic collapse scenario?