> Inflation is the result of the deficit This is extremely myopic. Price inflation is the result of the explicit government policy that says price inflation m

> Inflation is the result of the deficit This is extremely myopic. Price inflation is the result of the explicit government policy that says price inflation must happen, and that enough new money will be created (monetary inflation) to make it happen. The part of the deficit that is debt owed to non-government entities is those entities wanting the large-scale equivalent of a savings account, and is not any more inflationary than a savings account. The part of the deficit that is "debt owed to the Fed" is monetary inflation. The other nongovernmental "debt owed to the Fed" like home mortgages is also monetary inflation. If the monetary inflation from that part of the deficit did not occur, then the Fed's technocratic mandate would be to lower rates even further to send even more new money to the banking industry so that price inflation would still occur. This is the dynamic we've been suffering for the past 40+ years of fake "fiscal responsibility", that has seen the government starved of being able to spend for deliberate purposes like mitigating the damage to our industrial base from offshoring. Meanwhile all that monetary inflation still had to occur, so most of that money was just dumped into the banking sector. This mainly bid up the asset bubble, but to close the feedback loop that new money still has to get back to the consumer price index. This happens through consumer goods that can be financialized (housing, cars, insurance, education). Which is why those things have shot up in price - to bring up the average while manufactured goods have continued to go down in inflation-adjusted terms.