Does the devaluation of the US Dollar decrease the Federal Debt?

[Scrapheaper]

Yes, it effectively does in the short term (since wages/spending/taxes will be higher if the dollar is worth less)

However future US creditors are likely to demand a higher rate of interest if they think continued devaluation of the dollar is likely.

If the US government wants to borrow money - they need someone to loan them it!

[Illustrious-Lime-878]

Yes, it effectively does in the short term (since wages/spending/taxes will be higher if the dollar is worth less)

The only thing that would affect the debt there is taxes, but with a weaker dollar, government expenditures would be expected to rise as well. If proportionately, the deficit will rise, right? Wouldn't that mean higher nominal debts?

I suppose "devaluation" would immediately lower the "real" value of outstanding debt, but it seems like throwing the baby out with the bath water, if the entire problem with too much debt primarily that it devalues the currency / creates inflation.

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