How will the devaluation be measured?
When compared to gold and some other commodities, the actual current rate is much greater than 2%
That amounts to an inflation rate of 2%.
By the rule of 72, a compounded rate of 2% will halve the deficit in 36 years.
I believe average maturity on federal debt is currently about 5 years.
Since inflated dollars would be used to purchase future debt, would that increase the rate of debt depreciation?
But, if interest rates spike higher, would that neutralize debt depreciation?
Really complicated now that I think about it.
One thing I do know.....
The dollar has lost 95% of its value since the Fed was established in 1913.