Why no government action on debt?
Not sure I understand the question. We solved one year’s problem by creating more debt to pay for the printed money and then (mostly now) borrowed money. High levels of debt at the sovereign level turned into extreme high debt. We need (and had it for while) extreme consistent economic growth in excess of interest rate on that debt. But no more. With 8% reported inflation and a 4% interest rate – we are negative 4%! Thus, we create inflationary expectations. That leads to hyper inflation. Maybe not Argentina at 100% or Turkey at 90% but clear double-digit inflation.
Plus, you need an affordable price of cheap energy when you have high levels of debts. In this world of greening, we have ever higher costs of energy, we have slowing growth and interest on our own debt keeps rising.
MAJOR POINT 3: You cannot have high levels of inflation, and then print more money or we will have hyper inflation. That is what makes the British situation so astounding (bad, bad, bad). The dilemma? Raise rates – slow economy – recession. Lower rates – get high hyperinflation. We are in trouble in Canada. The US not as much, Europe is in big trouble and BLACK SWANS ARE FLYING.