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US Is Inflating Its Debt Away After Unprecedented Spending Binge

When measured against the economy, America’s debt is set to post the biggest drop in at least two decades.

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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.