Like the Weimar Republic? High inflation will raise the costs of goods and services and the cost of government.
There are over 60 million people on Medicaid, 45 million on Medicare, and 50 million on SS (including DI). Consider what COLA increases will do to SS and the fact that 10,000 people a day are turning 65 and will continue to do so for the next 20 years. What happens to interest rates to finance our debt? 43 cents of every federal dollar spent is borrowed. And inflation will cause interest rates to rise along with energy costs, i.e., 70% of our oil is imported. Inflation will destroy this country just as much if not more than deflation.
I get that there’s a risk of hyperinflation but there are two things about hyperinflation you need to understand.
1. If you know how to grow your own food you are somewhat insulated
2. It would wipe out all debts and allow us to restart with a new currency and new rules to prevent it from ever coming to that again.
Germany is the only fiscally prudent nation in Western Europe for one reason and one reason alone. They endured Weimar.
And let me tell you what the alternative to hyperinflation could be. It could be a situation where as many as 30% of homeowners are forced out of their homes. Where many small business owners are forced out of their businesses (if they own the premises) for inability to pay the mortgages. That would be far more damaging to national stability than hyperinflation.
We’d survive hyperinflation and a currency reset. We might not survive a quarter of the nation’s home owners being kicked out of their homes and forced to rent because they will forever have resentment against this country and will be less likely to care what happens to it.