That’s correct, it depends on change on the money supply of fiat, which mainly depends on what central banks & governments do. However, they are trapped in the debt spiral. QE infinity and ever increasing deficit spending is inevitable.
Remember, there are three ways the US can lower its debt:
Austerity (lower spending to create surpluses) → political suicide
Raise Taxes → Likely political suicide that eventually leading to lower productivity anyway
Allow for higher structural inflation → higher nominal GDP leads to higher taxes leads to lower deficits (easy peasy)
Which do you think they will do?
Remember, there are three ways the US can lower its debt:
Austerity (lower spending to create surpluses) → political suicide
Raise Taxes → Likely political suicide that eventually leading to lower productivity anyway
Allow for higher structural inflation → higher nominal GDP leads to higher taxes leads to lower deficits (easy peasy)
Which do you think they will do?
