(03-28-2021, 08:34 AM)MarleyJag Wrote:

(03-28-2021, 05:13 AM)The Real Marty Wrote: I think there is a good chance that the powers that be are letting inflation happen in order to reduce the real value of the federal debt.  There's no way we can pay it back.  And it's getting to the point where we won't be able to even pay the interest on it.  The only way out of this mess is inflation.  Inflation will bring in more tax revenue, therefore allowing the government to afford the trillions in debt they have piled up.  

It is a conspiracy theory, but I think it's plausible.  

The problem will be controlling the inflation.

That will effectively devalue the dollar. It can cause a lot of pain for the working class and obviously detrimental to the overall health of the economy.

There's a reason inflation is called "the hidden tax."  When a country cannot raise enough in taxes to cover its obligations, the only way out is to devalue the currency.  Because when a dollar is worth less, then the debt is also worth less, because the debt is measured in dollars.  More tax revenue in nominal terms, smaller debt in real terms.  Abra cadabra!  Make a big chunk of the federal debt disappear!

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