Mark Moss argues sustained double-digit inflation is deliberate policy to improve the debt-to-GDP ratio without increasing real output. He cites a 2015 IMF paper on financial repression and points to the 1940s, when high inflation and artificially low bond yields forced savers into government securities, letting the government capture the spread between them.
But if we have double-digit inflation for 3 or 4 years, then the GDP goes up because of inflation. If I sell 10 iPhones for $1,000, I made, you know, whatever, $1,000, $10,000. If I sell 10 iPhones for $2,000, I've made $20,000. So the GDP goes up, but I haven't sold any more units. So by inflation, they bring the GDP up and naturally the debt-to-GDP ratio re-equalizes. So it's not just that we will have it, we have to have it. They need it. As a matter of fact, the IMF, International Monetary Fund, which is the central bank above central banks, wrote a white paper in 2015 called it the liquidation of government debt. In the white paper, they explain it. It's called financial repression. The US already did this in the '40s. You have very high inflation and very low bond yields. You force pensioners, you force mutual funds, you force 401s, you force banks to buy the bonds at very low yields, and you run inflation hot, and you steal the difference.
