The debt needs to be backed by an asset like precious metals or real estate. .. if inflation outpaces the debt, the value of the asset in dollars goes up but the debt stays the same. His example is a bit extreme. So let's say you bought a $100k house and took out a loan for $100k. Even if the dollar loses half of its value, your house will be worth $200k but still only have the $100k debt.
The debt needs to be backed by an asset like precious metals or real estate. .. if inflation outpaces the debt, the value of the asset in dollars goes up but the debt stays the same. His example is a bit extreme. So let's say you bought a $100k house and took out a loan for $100k. Even if the dollar loses half of its value, your house will be worth $200k but still only have the $100k debt.