(03-28-2021, 05:13 AM)The Real Marty Wrote:

(03-27-2021, 06:03 PM)MarleyJag Wrote: The biggest threat ultimately is devalued currency and massive inflation. Like Venezuela style inflation.

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.

The Fed is very open about its goal of 2% annual inflation.
Maintaining our ability to pay the interest on our deficit is one of the reasons they have that goal.
The other is that just a little bit of deflation is kryptonite to a consumer economy. If you believe goods will be cheaper next month, you are more likely to hold back your purchasing. Deflation is very much to be avoided, or so the prevailing theory says.

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