Replying to Avatar StackSats ⚡️

Too much government debt?

Don’t worry, the BIS has a playbook how to liquidate government debt via financial repression and inflation.

„Low nominal interest rates help reduce debt servicing costs while a high incidence of negative real interest rates liquidates or erodes the real value of government debt. Thus, financial repression is most successful in liquidating debts when accompanied by a steady dose of inflation.“

https://www.bis.org/publ/work363.pdf

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Sound Money 2y ago

In their world, there are no trade-offs. Only solutions. Absolute intellectual pygmies.

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