Will We INFLATE Our Way Out of Debt?


I've often wondered if there's a method to the madness. It's probably too optimistic of me to actually think this because it would mean that if there's a method to the madness, someone in government is actually thinking 5, ten, 15, 50, maybe even a hundred years down the road. And I don't think that our people are really smart enough, or selfless enough to do that. They're all thinking about how do I get elected. But you wonder sometimes whether the goal is maybe to inflate our way out of debt. Think about it for a second. Who is holding so many U.S. treasuries? China. So if we wanted to get ourselves out of that situation, maybe we could actually cause all this inflation, which would mean China's portfolio of treasuries, which they have to buy, to keep their currency, pegged to somewhere near the dollar. Then China would actually see its value get eroded. Just like this banks of Silicon Valley bank had all these treasuries and when everybody wanted their money out, they said, oh, I get these treasuries, but they're not going to come do for two years or ten years. And then they'll get back their money, right? And two years or ten years, but if somebody needs their money now, that's not going to do them a lot of goodwill about China. China kind of needs money right now. It's fighting this thing over in Ukraine. It's challenged because of the economic environment from the rolling lockdowns, all of that is a problem. So you wonder, could you see an SVB type situation over there in China?

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