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“There's no chance US will default on its debts, all it has to do is to print more money.” Trying to inflate away 40+ Trillion in debt would directly result in
by Retric 9mo ago
“There's no chance US will default on its debts, all it has to do is to print more money.”
Trying to inflate away 40+ Trillion in debt would directly result in hyperinflation.
> they debased the Yen to garbage levels
Look at Yen to USD exchange rates and it’s clear they didn’t. “From 1991 to 2003, the Japanese economy, as measured by GDP, grew only 1.14% annually, while the average real growth rate between 2000 and 2010 was about 1%,” https://en.wikipedia.org/wiki/Lost_Decades https://en.wikipedia.org/wiki/Lost_Decades Meanwhile the USD exchange rate in Jan 1988 was 127 vs 140 in 1998 vs 107 in 2008. It went up and down all through the 20 years of poor economic growth, but something else was clearly the issue.
- ptero 9mo agoIt did not go into a hyperinflation after the WW2, when the US debt load as a share of GDP was even higher than today; and deflated in the same way US is likely to do it now (bond rates forced way below inflation with yield control). I am not saying that the process will be pleasant for the US or its citizens. But it is not without precedent and is extremely unlikely to cause hyperinflation. My 2c.
- Retric 9mo agoThe post WWII economic boom outgrew the debt thus dramatically decreased the debt to GDP ratio. The US is unlikely to find itself the only industrialized nation without massively damaged infrastructure again anytime soon.
- deleted 9mo ago[deleted]
- bad_haircut72 9mo agoActually I think this is their plan... :(