Inflation: The Government’s Silent Tax

High national debt forces the government to utilize inflation as the only viable option to extract money from citizens, diminishing the real purchasing power of cash savings. People grasp the severity of this when they realize that while their nominal savings may remain the same, their actual value declines progressively, impacting their ability to purchase goods. Additionally, raising interest rates excessively to combat inflation could lead to a financial crisis, which explains the government's hesitance to exceed certain thresholds. Effective management of inflation requires balancing interest rates to avoid stifling economic growth through excessive debt reduction.

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