If we have lower federal rates, that causes an inflation right?
Currently we have massive national debt. And we pay interest on that.
Why not try to maintain inflation just slightly above the interest rate of our debt, so that eventually our debt is irrelevant (the “buying power” of the 30ish trillion dollars would be reduced faster than the interest we pay on it).
In: Economics
Can’t believe no one here has mentioned the obvious. The interest rate on US debt is tied to inflation. If inflation goes up, so does the interest rate.
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