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How will inflation affect the US national debt?

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This means that the actual value of the US debt is declining. The US Government also owns a lot of Treasury bonds (the Federal Reserve and the Social Security Trust funds for example). The real value of these instruments will also go down. Thus inflation actually reduced the real value of the US National debt. read more

U.S. debt has long been perceived as the ultimate safe harbor: Investors believe that the United States will never default or miss an interest payment, and that surprise inflation could not eat away much of the real value of short-term debt in a year. read more

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Government Debt & Inflation
www.themoneyenigma.com

Inflation and Debt
www.nationalaffairs.com

The inflation option
www.economist.com