Inflation.

What the Fed needs to do and Uncle Sam needs to hope for is a serious dose of inflation like Zimbabwe experienced in the earlier part of this decade after they ruined their economy by wiping out the only sector that earned any real money. Inflation was eventually measured in the 1000′s of percent.

In that period, I sold a used truck that I had bought for $100 000 for over $1 million. I sold a lot of other stuff for 10, 100 or even 1000 times what I paid for it.As I had operated on a sizeable bank overdraft which was still denominated in Zim$, with price increases like that it didn’t long to pay off the loan even with interest rates of 40% and more.

As far as paying off debt was concerned, the fact that the currency was worthless was not the point.

So if inflation was just over the horizon, then your Uncle Sam should borrow a couple of million, buy stuff that will hold its true value, like Woodchips cartoons, gold etc. wait for inflation to hit then start selling it all at a huge (paper) profit, pay off his debts, then do it all over again.

I think I have gone full circle in my argument here, isn’t that what the Fed and many other governments are already doing?

THANKS