(05-20-2022, 08:15 PM)EricC85 Wrote:

(05-20-2022, 09:45 AM)The Real Marty Wrote: I have thought for a long time that our only way out of our government debt problem would be inflation.  The problem is, if it's not done carefully, the side effects are catastrophic.  Certainly 8% is overdoing it.

If that's the plan then 8% is a drop in the bucket they'll need to get it to double digits to start chipping away at 27 trillion.  Won't hurt them it'll destroy the common man however.

Well, 27 trillion times 8% is 2.16 trillion.  They've lowered the debt in real terms in one year by over 2 trillion dollars.  It's a neat trick, if you believe they are doing it on purpose, which I don't.  Of course, I'm not taking into account the deficit for this year, which adds money back to the debt. 

But inflation has always been good for people who are in debt, and bad for people with savings.  And the US government is the biggest debtor on the planet.

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