Top French Official: U.S. Trying to Inflate Its Way Out of Debt

A top advisor to French President Nicolas Sarkozy – Henri Guaino – said on Tuesday that hat the United States was “flooding the world with liquidity” to try to inflate away its debt.

But as UBS economist Paul Donovan, prominent economist Michael Hudson and others have shown, it is a myth that governments can inflate their way out of debt traps.

As I have previously noted, trying to inflate our way out of debt is like a monkey trying to outrun a lion.

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