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> I am curious, with all the national debt, will higher inflation help service that debt going forwards? The simple answer is no it wont. The liabilities that
by than3 4y ago
> I am curious, with all the national debt, will higher inflation help service that debt going forwards?
The simple answer is no it wont. The liabilities that matter the most have COLA so when inflation goes up so do payments.
The only thing it actually does is make worthless any existing bonds so anyone holding them is out the money with special corrupt deals for critical infrastructure that might have exposure (i.e. blackrock having 1% bonds being swapped for current interest rate bonds). That would primarily be China, and the Saudis. I'd imagine that is what prompted segmenting the bond market with TIPS vs non-TIPS bonds.
The burden of inflation is placed on the populace, and when people are unable to afford basic necessities, and have to work as slaves (because currency is no longer a store of value and the crown of shadow government in effect seized property), unrest inevitably occurs.
The Fed is a private institution, not an actual branch of government, but they are seizing money from every wage-earner through inflation, and government does the same since percentages increase the basis amount taxed.
Its unfortunate but all the historic factors are slowly lining up with many of the same conditions previously seen between 1767-1776.
Don't get me wrong, this is beyond stupid, but I've come to realize the people in the positions that could stop this simply have no interest in doing so. Its more profitable for them to allow this to progress because "what are you going to do about it".