If we had only a few hundred billion in debt, I would say a little bit of inflation would certainly help whittle that down.
Higher product prices mean higher tax revenues.
Higher wage costs mean higher tax revenues.
These higher revenues for the government would help alleviate the funding pain.
But, we are approaching $23 trillion in debt, with escalating spending and budget deficits to boot!
Add to the mix:
-Global move away from the Dollar as a reserve currency (lower Dollar = higher inflation)
-Global move away from funding U.S. Treasury debt. (eventually, soaring bond yields will make funding our debt impossible)
-Escalating trade wars (soaring domestic consumer prices with huge inflationary impact)
-Oil supplies placed at risk from escalating Mideast turmoil and threats of tanker blockades (soaring oil prices, which some analysts predict could surpass $300 bbl, will permeate every facet of our lives with massive inflationary impact)
Now we’ve got a scenario whereby the word “implosion” fits the bill.
Only HYPERINFLATION can resolve this problem.
Brace yourself for eventuality.
CIGA Wolfgang Rech
Here Come The China Tariffs: Core Inflation Hotter Than Expected, Headache For Powell
July 9, 2019
Having slowed and disappointed for the last two months, all eyes are on US consumer price index growth (which was expected to slow once again in June) this morning as the next Fed rate-cut narrative confirmation.
The problem for rate-cut-hopers is that the picture is mixed at best. Headline CPI slowed to +1.6% YoY (exactly as expected) – below The Fed’s mandated 2.0% ‘stability’ level; but core CPI rose 2.1% YoY (hotter than the expected 2.0%) and above The Fed’s 2 handle…
WOW James, great common sense from a Fed nominee!
I don’t know how well a gold standard would work for a welfare state, but maybe we would have fewer “shabby little secrets” as Greenspan spoke of long ago. Judy Shelton’s write up today gives me goosebumps. It all crescendos into a grand thesis. “Across borders and through time.” I think I understand.
POTUS: “When you see the Google executives, together, and one of their executives decides to… there he is, stand up please! How good… what a great job… He’s not controversial, he’s truthful. He’s truthful. That was a great job. That was one of many.”