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If you inflate the currency, GDP goes up, and nominal debt stays the same. That’s the government’s current playbook, with its massive fiscal deficits.

• darkfloo 1y ago
  That only works if rates don’t go up which is probably not a good premise to rely on
  • dragonwriter 1y ago
    If you are in a balanced budget or continued deficit situation, then, yes, increased rates will eventually be a factor (but that's a lagging effect, even then) if you have a sufficient surplus that with the effect of inflation increasing its nominal size with the same real revenue and spending you can pay down debt at least as fast as it comes due, so you aren't going back to do new net borrowing, increase cost of borrowing doesn't matter much.
• Gasp0de 1y ago
  The only thing missing is replacing the head of the federal reserve bank with a mindless puppet so they stop standing in the way of success (inflation).
• tobias3 1y ago
  This works if all the debt is long term debt (>=10Y), which surely Jellen and Bessent have been selling, right?
  • StopDisinfo910 1y ago
    Have you considered that maybe lenders might be aware and are therefore not very willing to give long term debt to the USA?