[cwalv]

> You can hike rates to curb the inflation only if it doesn't bankrupt everything and everyone.

They will inevitably inflate away much of the debt. But, that hurts dollar savers more than debtors.

Some cash rich companies today are earning more on their deposits than they're paying on their bonds from a couple years ago.

[sudosysgen]

You can't inflate away government debt, not meaningfully, because it's almost always going to be at a rate higher than inflation by construction.

[wholesomepotato]

Yes, but also - they lie about the inflation and force the public to hold the bonds anyway (aka. financial repression, yield curve control).

[cwalv]

Exactly. YCC is already happening in Japan; it's inevitable here too. The only alternative is outright default, which never happens when the debt is denominated in currency the debtor can print.