[Arnfinn Madsen]

To clarify on the loan part, let's say you borrow $20k of me to buy a car. The the government quickly push up inflation and the car suddenly gets worth $40k, then you have a $40k car with only $20k in loans. However, if I knew the government would make so much mess in one month I would simply charge you 100% montly interest for the first month.

So in political terms, let's say you become president and you see that your country has x$ in loans and the market hasn't factored in high inflation. Isn't it tempting to just print money and suddenly half of the national debt disappears? It is and it works, but then comes the next president who is responsible and tries to renew the government bonds that expire and says "Borrow us money for 5% interest, I promise to keep inflation stabile" to which the market responds "LOL @ your country, we want minimum 30%". So you gain short term but lose long term.