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Every federal government since the second World War, and especially since Reagan. Deficit spending is closely tied to currency inflation.
by drinian 16y ago
Every federal government since the second World War, and especially since Reagan. Deficit spending is closely tied to currency inflation.
- hga 16y agoNeither saved Jimmy Carter, though, and taming inflation (started by Carter's appointment of Paul Volcker as Chairman of the Fed in August of '79) was a major factor in saving Reagan's first term. As far as the "just delay the day of reckoning" question, by partly liquidating debts denominated in the currency in question inflation and/or devaluation does a lot more than that. It allows repayment of less real value than was borrowed. Hmmm, I should also point out FDR's actions WRT to gold, especially outlawing all contracts that were written in terms of gold. The problem back then was deflation, but this no doubt also changed the game after the Great Depression when inflation later became the big issue.