has gotten this year, one of its most surprising direct offshoots has gone largely unnoticed: US government debt is shrinking rapidly.day by day, minute by minute. But it’s dropping in the way that really matters: when measured against the inflated size of the economy.
This is incredibly tone deaf and seems to applaud inflation's debasement of our currency. Add to this that our national debt will soar as we reckon with interest obligations increasing dramatically due to higher rates (for ever 1%, we're on the hook for an additional $310B).
The debt is just all the net dollars that have been created into existence that have not been taxed out. So in reality, we're inadvertently causing a dollar crunch with fiscal and monetary tightening which is leading into a global recession ir depression.
This only considers absolute values of the lowered discounted PV of debt and not the supply adverse impact on growth to service that debt. Which is better, a $100 debt in an economic boom or a $10 debt in depression?
Inflation always euthanizes the creditors