Here's Why Inflation Isn't a Solution || Peter Zeihan

• Avoid viewing inflation as a solution to federal debt because it damages asset values and raises living costs.
• Without income growth exceeding inflation, overall financial health worsens for most Americans.

• Inflation can reduce the real value of federal debt if income grows faster than inflation.
• But many countries rarely grow income by more than 50% over four years, making high inflation risky.

Inflation might seem like an easy solution to reduce the real value of the US federal debt, but it's a risky and flawed approach.

Even if inflation rises 10% annually for four years, producing about a 50% price increase, income growth must outpace inflation to avoid worsening the fiscal situation. Few economies or income streams grow faster than that.

Moreover, inflation reduces the value of all assets—not just the federal debt—including the stock market, real estate, and bonds, which directly harms Americans' savings and wealth.

Peter Zeihan points out this would squeeze all Americans negatively, degrading the value of their property and investments just to reduce one debt class because “we can't seem to get anyone in government who can do basic math.”