[quote=sreeb]
How much debt do you intend to monetize and how much inflation do you expect to get?
[/quote]
Maybe just start off with monetizing 2% of the debt to see what happens? You predict that interest rates would go up, but everyone thought interest rates would go up when the U.S. was downgraded by S&P, but interest rates actually went down.
Personally, I don’t believe that the U.S.’s current debt is anything to be worried about. If anything, the U.S. should be borrowing more while rates are low. My preferred solution would be to raise taxes and cut the defense budget. However, the U.S. Government shouldn’t be reducing spending during a recession, so the money saved from the defense budget cuts should go towards strengthening the social safety net.
I was only proposing monetization of the debt to those that believe in invisible bond vigilantes.
