Reply #27: edwards is right--we WANT hyperinflation right now [View All]

The deficit is a big problem. But our "foreign" debt is all in US dollars. If we don't deal with it we will have two options: 1) austerity and huge debt payments, 2) turn on the printing presses, causing hyperinflation.

Hyperinflation will hurt those holding large amounts of cash assets the most--the rich. For the average american (and Edward's constituency) hyperinflation will be a GOOD thing. Basically, if you have a fixed rate home mortgage, that mortgage that was going to take 30 years to pay off will be payed off in 5 years if your salary goes up along with the hyperinflation (like it most likely will). Costs of foreign goods will jump, but that will just result in more products being produced in the U.S. again--meaning more jobs for blue collar workers.