For all the attention that soaring inflation has gotten this year, one of its most surprising direct offshoots has gone largely unnoticed: US government debt is shrinking rapidly.

Not in dollars-and-cents terms. No, that’s growing day by day, minute by minute. But it’s dropping in the way that really matters: when measured against the inflated size of the economy.

Source: US Government Debt Shrinks Against Soaring Inflation – Bloomberg

Inflation, created by the government’s own actions, deflates the value of the dollar. These cheaper, future dollars are then used to pay off the debts. It’s sort of like a financial scam.

And it is an actual wealth tax on everyone that benefits those who have debts. The Federal government has more debts than any other individual entity.

By EdwardM