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That's basically what is happening. Wait until the inflation kicks in. See Argentina as an example: http://academic.reed.edu/economics/course_pages/201_f06/Ca
by fnid 17y ago
That's basically what is happening. Wait until the inflation kicks in. See Argentina as an example: http://academic.reed.edu/economics/course_pages/201_f06/Cases/money_and_inflation_in_arg.htm http://academic.reed.edu/economics/course_pages/201_f06/Case...
- lkozma 17y agoAs far as I understand (from watching krugman-talks on youtube) the tragedy of argentina was that its debt was in $, which skyrocketed (as expressed in national currency) due to inflation. In case of US, external debt is in national currency, thus inflation might not have the same effect.
- dantheman 17y agoIt won't have the same effect, but it produces another incentive -- to get rid of our national debt all we have to do is print our way out of it thus drastically inflating our money, and robbing all holders of US Dollars.
- lkozma 17y agoAgain, from krugman-talks: no-one really needs to get rid of national debt, that is what Romania did in 80s and it was the worst economic move ever. You only need to service national debt, i.e. pay off interests, and exponential growth will take care of the rest. US debt right after WW2 is still there but it is peanuts in today's numbers.