By Jon S. Strebler
That was Mr. Russell’s mantra for many years, as he sought to describe the U.S.’s options for dealing with its massive debts. And that was back in the 1980s and 1990s, before those debts really boomed. The idea was that inflation made it much easier to service and even pay off debts, as it created greater tax revenues and reduced the “real” (adjusted for inflation) amount of debt. Thus, in the battle between fighting unemployment and fighting inflation, government has a vested interest in focusing on the former and leaving the latter for later.