Recession?

[Ken]

Doesn’t erode debt when interest rates are high.

Most debt is in fixed rate bonds like 10 year t-bills so inflation means the bond holders eat it, not the government. Only a few are inflation adjusted rate bonds like i-bonds.

So of the hundreds of billions or trillions of US debt that is held in long term bonds by governments around the world like China? Inflation just erodes their holdings. So 10-year bonds the US government issued in 2020 were issued in 2020 dollars but get paid back in 2030 dollars

As long as the interest rate on the bond is LOWER than the inflation rate, the government gains and the bond-holder loses from inflation.

Hard working Americans with credit card bills don’t have fixed rate debt. Neither do working class people who need a car loan or to get a mortgage for a house, or who need to sell their house, move. And get a new mortgage.

Sure.

Inflation erodes EXISTING debt but makes new debt more expensive. I'm not claiming that inflation is a good thing. Only that one beneficial side effect is that it erodes existing debt like existing mortgages and existing student loans as well as long-term debt held by the government at all levels including things like local school board construction bonds.