Quote Originally Posted by Gandalf View Post
Government debt isn't so much a problem. They can inflate it away at any time. The personal debt of ordinary people such as those with mortgages is much more of a problem. People default en mass and suddenly you have a crisis as banks are essentially bankrupt anyway. Personal debt is huge and an increase in interest rates guarantees insolvency and bankruptcy. Central banks are stuck in the middle. Rates were too low for too long and debt has mounted much higher.
So you're admitting that all the years you've been telling us that government debt was the problem and we were due imminent hyperinfllation you were wrong.

Personal and corporate debt are a problem in some countries, particularly in Britain. The situation is improving in a lot of countries though. Even if some countries do start to see serious problems with nonperforming personal debt it's noy going to cause inflation though, is it? Just the opposite in fact.