nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe often talks about how the idea of growing out of debt is not realistic. The idea is that as technology improves and productivity grows exponentially, prices will fall, and the real value of the debt will grow, making it harder in real terms to repay.

This makes sense for private debt, but wouldn't this kind of growth solve sovereign debt problems?

If the Fed/CB aims at 2% inflation, this will in time require an ever increasing expansion of the money supply, and if that money enters the system by buying treasuries, then eventually the Fed/CB should end up owning all the debt, at which point the debt crisis is essentially "averted". (Of course, while Cantilloning the benefits of technology away from the many and towards the few...)

Am I missing something here? Any macro #nostriches on here got some thoughts? nostr:npub1xwmyzp64xx03kw9ecd7fzsj3e9dgwah6an0rdng0cc6ux4dswwjs28pyyc nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle