The reality is that until the dollar is no longer the world reserve currency, it really does not matter how much spending happens and the debt is also not a concern. The entire system is built on avoiding deflation, not balancing against it. Inflation means you're getting that debt spiral no matter what. The only difference is how quick.
https://stacker.news/items/424890/r/halalmoney?commentId=424958
And inflation is necessary to make the debt smaller because future dollars are worth less, so waiting decades to pay it off means they pay out less for it in real terms.
If we owed 1 billion Zimbabwe Dollars, just waiting for the hyper-inflation 2007/8 would mean we could "pay off" that 1B for a fraction of it in real terms.
No replies yet.
