Inflation is the creation of money. So if they inflated the currency. They could literally just pay off the debt. Everything would instantly become 3x more expensive though.
The US just crossed $40 trillion in total debt.
That number has grown by $11 trillion in just the last 5 years.
The interviewer brought up those numbers.
But Trumps response is the something worth looking at. pic.twitter.com/so8rMp9OFb
— Bull Theory (@BullTheoryio) October 2, 2026
But can inflation actually shrink $40 trillion of debt?
Yes. But not the way most people think.
— Bull Theory (@BullTheoryio) October 2, 2026
If prices jump 2% all at once, the government erases $636 billion of real value off the debt it owes, compared to paying it back at today's prices.
If prices jump 4%, that number is $1.25 trillion.
If prices jump 6%, it's $1.84 trillion.
If prices jump 10%, it's $2.95… pic.twitter.com/xl9JJQoRIv
— Bull Theory (@BullTheoryio) October 2, 2026
That's a real benefit for the government. But it only tells half the story.
The US doesn't borrow once and forget about it.
It constantly rolls over old debt and sells new debt.
About one third of all US marketable debt comes due within the next 12 months.
The average… pic.twitter.com/Z5jWDtEmF4
— Bull Theory (@BullTheoryio) October 2, 2026
Compare what happens to America's debt-to-GDP ratio depending on whether interest rates keep up with inflation or fall behind it.
If inflation stays where it is today and nothing changes: the debt ratio climbs to 101.8% of GDP
If inflation rises to 4% but rates stay unchanged:… pic.twitter.com/XpYYiiLUam
— Bull Theory (@BullTheoryio) October 2, 2026
That's the setup gold, silver, and Bitcoin need to explode.
If the US goes down this road again, it means low or negative real interest rates for a long stretch of time.
That environment has historically been one of the strongest setups for hard assets.
— Bull Theory (@BullTheoryio) October 2, 2026
Yesterday Trump said inflation is totally under control.
Today he says inflation is the cure to our problems.
The messaging is just all over the place.
An absolute clown show. pic.twitter.com/1zcQOLsc3V
— QE Infinity (@StealthQE4) October 3, 2026
In a few years the national debt will be $50 trillion. If by then we pay 8% interest, the annual bill will be $4 trillion, and annual budget deficits will likely be $6 trillion. How will we pay for that? Triple the income tax? Eliminate all entitlements and most federal programs?
— Peter Schiff (@PeterSchiff) October 1, 2026
Prepare accordingly. From here, the dollar goes into hyper inflation territory pretty quickly… https://t.co/86YBdUy2Kj
— HealthRanger (@HealthRanger) October 3, 2026
The global bond market is selling off, and the real culprit is bigger than the headlines admit.
Ten-year yields are surging across the developed world. The US and UK are near 5.2%. France is pushing 5%. Even Japan is grinding higher.
Oil was the spark. The debt is the dry fuel.… pic.twitter.com/7nH8qkUUFX
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) October 3, 2026
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