[MUDDOG]

He's exactly right -- it'll be a default *in substance.*
The debt will be formally paid back, but in inflated dollars.

Paul Krugman has been editorializing for years in favor of 5 to 6% inflation, and
the new fed chief Yellen is pro-inflation.

[saganite]

Right. Inflation is the only way out but it depends on the US getting its budget under control. Meanwhile, retirees and middle class hardest hit.