Driving Down the Debt

Easy Peasy:

Balance the Budget. This only takes courage Nothing else.

Set a target inflation. Let’s say 3%.

Every year you beat the target print dollars and buy bonds back to that amount. Inflation will rise, but it shouldn’t be more than the amount you expand.

So, for example set a 3% inflation targ. If you hit 1.5% then calculate the amount the ‘unused’ 1.5% is of GDP. If GDP is $30T buy down the debt by $450B. IE you ‘saved’ 1.5% of GDP by not having enough inflation. Use that amount to buy back bonds.

Balancing the budget would push inflation down Once you get down to accumulated debt being about 60% of GDP you are probably fiscally sound.