[jyl]

It is theoretically a good thing to borrow at a fixed rate, acquire an asset that pays an income stream that is subject to inflation, then see inflation go high. Because you received more valuable dollars, and are repaying with less valuable dollars. The lender is the one getting hosed. Which is why interest rates move with inflation.

Not sure this all matters in the scenario you're describing, which is extreme and, in my view, highly unlikely.