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Date Posted: 6:06:31 3/10/23 Fri
Author: Jasper
Subject: It’s the most common way cash-strapped governments attempt to solve debt solutions

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You see, inflation cheapens debt, thereby making the government’s debt payments easier to meet. But there’s a catch….

Debasing a country’s currency creates a host of new problems such as reduced purchasing power, the total wipe-out of the middle class’s hard-earned savings, and the eventual destruction of general economic activity.

Should currency debasement persist, the government won’t even be able to make its debt payments, despite the debt being made cheaper due to the initial wave of inflation.

Those are the dangers of a political economy characterized by big spending and easy money. It leads to an economic death spiral that no government, no matter how rich or powerful it is, can avoid.

To avoid such nightmare economic scenarios, the political class has to exercise fiscal and monetary restraint — two concepts that are not in its lexicon.

https://www.zerohedge.com/news/2023-03-07/americas-debt-crisis-should-have-you-worried

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