Thats one of the arguments in favor of being in debt. When the government devalues (i.e. increases the money supply) it effectively reduces your debt in real terms.Originally Posted by andypaul
Today for instance, reserves were expanded by 4.4 billion. now because of the reserve banking system - this is probably more like 40billion. this has effectively given everyone in debt a real reduction of something like 4% of their debt outstanding (assuming 1 trillion total debt ).
of course for everyone else - it's just inflationary.
