the usa's debt dwarfs china's debt ..., page-35

Please amend the post I made to which I am replying. I wanted to edit it, but there is no edit function.

So here is a different version:

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OK. I give up. We're not going to have any serious inflation. I've been badly mistaken.

As there has been no serious Western inflation over the last 20 years or so obviously inflation has been defeated. It's just something nasty that happened to us in the bad old days before computers.

I should have realised that we are actually in a serious battle to avoid deflation which justifies all this printing of money which then disappears in a debt driven deflationary black hole.

So the USA can go print one trillion dollars. Two trillion dollars. Five trillion dollars. Any amount it likes I guess. I suppose it doesn't really matter because there are no inflationary consequences like I foolishly thought for so long. I guess that was just a silly dogma of mine.

The USA should go ahead and pay off all its debts just simply by using the printing press. There will be no inflation and the USA will be debt free. While we are about it, all the US states should be handed all the US dollars they need to get them out of their terrible financial difficulties. That way they won't need to cut services and raise taxes. What a wonderful idea!

To top all this off, as the USA will be debt free what better reason than for US dollar to rally and start a new long term US dollar bull market.

And the amazing thing is that despite printing all this money we won't have any serious inflation. Sounds like we'd better get the printing presses running even faster.

Now how does that sound?