[expat_panama]

"...eat the debt with compounded moderated inflation..."

It's true that price trends affect the impact of the burden of debt, but the idea here is to handle public debt with economic growth, not inflation.  The moderate inflation is only needed for preventing deflation.

[dollarbull]

It's true that price trends affect the impact of the burden of debt, but the idea here is to handle public debt with economic growth, not inflation. The moderate inflation is only needed for preventing deflation.

You're delusional if you think the game plan isn't default via inflation. The debt can't be paid and won't be paid in current purchasing power terms, it's mathematically impossible. Peak oil has also guaranteed slow-to-no growth, so there's no way to grow out of this. Bernanke knows this and that's why he must keep printing.