Attempting to inflate away government debt by targeting inflation above interest rates will backfire catastrophically because investors will anticipate the currency depreciation and front-run it by borrowing at the lower (nominal) interest rates while knowing they can repay with depreciated currency, causing debt to become even more parabolic and worse than if inflation had been lower.
causalpending
Speaker
John RubinoEvidence Quote
“if if it's government policy to have 4% inflation and interest rates are two or 3% then obviously you want to borrow money at two or 3% knowing you get to pay it back at um uh a depreciated with a depreciated currency and that means debt goes par parabolic even more parabolic than it is”
Source
What If A Coming Recession & Bear Market Are The LEAST Of Our Worries? | John Rubino— Adam Taggart | Thoughtful Money®Created: 8/10/2026, 11:15:06 PM
My Notes
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