US Is Inflating Its Debt Away After Unprecedented Spending Binge

For all the attention that soaring inflation has gotten this year, one of its most surprising direct offshoots has gone largely unnoticed: US government debt is shrinking rapidly.

Not in dollars-and-cents terms. No, that’s growing day by day, minute by minute. But it’s dropping in the way that really matters: when measured against the inflated size of the economy.

● What It Means: The Good News

This is a big break for the government and taxpayers. It makes the debt more manageable and easier to pay back.

● What It Means: The Bad News

It’s lousy for bondholders. ...