That debt is so huge. What I know is that inflation benefits the banks that's why they're very rich, am I correct about this?
Inflation is really the easy way out. I also don't think anyone will ever risk their reputation when there's an alternative that everybody else is blind about.
I think inflation could hurt the banks. Inflation helps debtors because they pay back loans in less-valuable money. Conversely, it hurts creditors, because they are receiving less-valuable money.
Consider this; a bank is loaning money out to people to buy houses. The interest rates for these loans are fixed at 5%/year. What happens if inflation jumps up to 30%/year? The banks are taking a 25% hit.
I see. It makes sense.
So the benefit will majorly be on the part of the politician.