They know they cant inflate it away, but just it down so it is workable. The ratio is Debt/GDP Where debt is $34Trillion and GDP is $27.36Trillion. That works out to 1.24. For this calculation, anything over 1.0 is deadly. The only soveriegns who have gone to that brink either 1) defaulted 2) inflated their way out
Umm Japan is that. 263% as a matter of fact. And hasn't done either. For decades they have .... deflated.
It's not possible to inflate away the national debt while the government is running a 7%-of-GDP deficit. In any case, government debt is overrated as a problem - at least re: USA. Less than 20% of it is held by foreigners. You can't go bankrupt owing money to yourself. It's not going to be pretty when savers get rugged by confiscatory taxation, but the tax pigs will have little option but to squeal and take it.
Just wondering, how many roaring inflations have you lived through? In all seriousness, we are looking at a category 6 Hurricane. Where do you get your "coolness"? The only folks who are going to be unscathed are already 6 feet under. Among other things, the currency is going to get rocked. its up right now, but eventually has to go down hard. And what is the big deal with that (crush the FOREX traders. Nobody likes them anyway.) That's it? No. Most goods the middle class (and below) needs is now imported. That was cool as long as the U.S. was calling the shots. What if the U.S. Dollar craters? Not a joke. Remember that flick " Rocky 3". The guy asks Clubber Lang for his prediction: "Pain".
No. I think real wealth should be created though work, not from government. If people get their wealth through financial stimulus or excessive tax cut, they should give it back through inflation. That's fair.
House prices are going to stall while wages increase? RE Investors and speculators are going to stop doing what they're doing? The poor will become richer while the rich become poorer?
I also have these questions in my mind. If things don't change, the young generation will stay in poverty.
A “useful” side-effect of massive wealth inequality is that when expropriation day arrives, 80% of people won’t be impacted at all. The 20% who will be are mostly old, not really in a position to take up arms.