Hugh "Inflation allows easier repayment of debt, both private and public."
i'm confused. if price of everything around an individual goes up (food, taxes, transportation, clothing, housing, schooling) with equal or somewhat higher amount of income increase to that individual, if that does occur, where does that individual get the money to pay off the debt? maybe my thinking is out of whack; nothing new there.
"A government with heavy debt has two choices, inflation or default."
There is another theoretical choice and that is restructuring an economy so that it actually works/grows. If you can grow an economy, you can grow it out of debt, which is exactly what the US did after WW II. That's obviously what the German leadership would like to see the Greeks do. It is not easy, of course, to do such restructurings.