Correct!
Throughout history that is how it has always been done.
They just inflate the money until they can pay the debt off for the price of a new car.
But they are not really interested in paying the debt off anyway.
Too many well connected people are making fortunes off the annual interest on the debt.
Look, here is how I see the scenario playing out. Americans hold dollars, of course. But so do other’s around the world. Euro dollars, Petrodollars. Countries have held American dollars as a stable store of value. If they start dumping them, the Fed may feel that they would be forced to raise interest rates to stop the bleeding, Unfortunately, they will have to raise rates HARD. High rates will kill our economic growth AND make government debt payments more difficult. Hard times, my friend, hard times.
Inflation also increases the debt servicing costs of the now $18 trillion national debt. We will be carrying our money around in wheelbarrows like the Weimar Republic. And the dollar will surely lose its place as the world’s reserve currency.