💵🇺🇸🇬🇧Russia claims America could make its gigantic national debt easier to carry by allowing the dollar to lose value over time.
There is no proven secret plan to magically erase $37 trillion with crypto. But the basic idea is real: inflation can make old government debt cheaper in real terms.
And that is where British and American households should pay attention.
💸 Your Money Stays the Same — Until You Try to Spend It
If you have £20,000 or $20,000 in savings, nobody has to take a penny or a cent from your account to make you poorer.
Prices simply rise.
Your balance stays the same, but food, energy, housing, travel and services cost more. That is why inflation is sometimes described as a hidden tax. 📉
If prices rise by 10%, your £20,000 or $20,000 may still look exactly the same on your banking app, but it buys roughly 10% less than before.
And if your savings earn less interest than the rate of inflation, you are still losing purchasing power even while your balance appears to grow.
For example, if your savings earn 4% but inflation is 6%, you are going backwards in real terms.
The danger is not usually that the government takes money directly from your bank account.
It is that your money loses value faster than your savings grow.
Governments, meanwhile, can benefit because old debts are repaid using money that is worth less than when it was borrowed.
Your mortgage does not work quite so conveniently.
Owe £150,000 or $300,000 on your home?
You still owe it.
And if interest rates rise, your repayments can become more expensive at exactly the same time your food, energy and household bills are climbing. 🏠🔥
Crypto enters the story through dollar-backed stablecoins, which can create additional demand for US government debt.
Gold matters because countries such as China, Russia, India and Brazil are also exploring ways to rely less on the dollar.
The biggest danger for America may not be a sudden dollar collapse.
It could be something much slower:
the rest of the world simply needing fewer dollars.
And for ordinary savers in Britain and America, the real question is simple:
If governments can reduce the real burden of their debts by allowing money to lose value, who ends up paying the price? 💷💵
Chameleon Magazine 
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