The current debt levels of 🇺🇸 USA government represent a significant inflationary force due to the necessity of continuously issuing new debt to service existing obligations.
Despite the presence of high interest rates intended to reduce inflation, the perpetual need for new debt to pay off old debt exacerbates inflationary pressures.
This cycle creates a scenario where the government is injecting more money into the economy, leading to increased demand without a corresponding increase in productivity, thereby driving up prices and contributing to inflation.