5 ms·
This is exactly the reason the fed is ok with current inflation readings. Huge debt bubble in the American middle and working class, along with a low growth eco
by playingchanges 5y ago
This is exactly the reason the fed is ok with current inflation readings. Huge debt bubble in the American middle and working class, along with a low growth economy. The only way to get rid of the debt currently is to inflate it away.
- guessbest 5y agoIt won't happen because banks own that debt, and they don't want those assets to get inflated away.
- meowster 5y agoI've heard that such debt contracts have been retroactively-changed to be paid in gold instead of the hyper-inflated currency. I cannot find evidence to backup such claims, has anyone else heard of this or have an expample? And like another user suggested, what's to prevent the government from passing a law that changes debt contracts?
- guessbest 5y ago>And like another user suggested, what's to prevent the government from passing a law that changes debt contracts? In the USA it will be lobbyists.
- pbak 5y agoSo they will not "prevent" the government, they will cajole and corrupt people in the legislative and executive branches so it doesn't get changed.
- mandelbrotwurst 5y agoPrevention doesn’t imply anything about its means.