France recalls ambassador to Rome-worst diplomatic crisis between France and Italy since WW2.

[His Divine Shadow]

Didn't central banks pump in over 13 trillion USD in the global economy, hoping to create some inflation, and got none?

[K. A. Pital]

Didn't central banks pump in over 13 trillion USD in the global economy, hoping to create some inflation, and got none?

Shush!

We just get 5% inflation and things turn out fine.

Not like with 0,6% inflation lol.

[J]

But anyway, please do elaborate on how exactly Greek debts can be inflated away. Timeframe, inflation rates necessary, etc.

Well, with a 5% inflation rate for 10 years, you get ~63% inflation as a whole. Meaning a debt reduction by ~39%. After 15 years, it's 200% inflation/ 50% debt reduction.

I think that we have "too much money" floating around at the moment globally. This is a side-effect of the crisis in 2008 and the according actions of the various governments and central banks.
While "flooding the market with money" and rescuing the big banks back then prevented a depression like in 1929, we see the negative side-effects now: If you have too much money, the money available is simply too much to be invested in the "real economy". Hence money is invested to "make money with money", which exacerbates this problem.

To get rid of this problem, you basically have 2 possibilities:

1.) The central banks can try to lower the amount of money floating around. But this also is dangerous because it could create a recession.
2.) A period of inflation. Then the amount of money available doesn't shrink, but is worth less.

Option 2 is more difficult to achieve, but safer.

I'm sorry, say again? You want to cure an alcoholic by handing him another case of rum?
Surely, he'll drink himself sober this time!

[K. A. Pital]

It has been tried and it failed, because inflation is nowhere to be seen.

2% is like, wow, classy. Many alive today would die of old age watching that debt “inflating away”... not.

[J]

Iceland has already shown us the way forward from the debt trap; default & take the short term pain, restructure and reap the long term gains.

But we can't let Greece and the other peripheral nations do that because it means the central EU powers will have to eat a giant dog turd sandwich, therefore we must keep the PIIGS in eternal debt slavery & poverty under the guise of European unity.

[His Divine Shadow]

Didn't central banks pump in over 13 trillion USD in the global economy, hoping to create some inflation, and got none?

Shush!

We just get 5% inflation and things turn out fine.

Not like with 0,6% inflation lol.

To be honest it was for me a rhetorical question.

The reason inflation doesn't happen is because what drives inflation is ordinary people having more money, the central banks printed a lot of money but it did not go where it was needed. To borrow a phrase of Mark Blyth on QE, it was like wanting put water in the kettle and doing so by showing a fire hose through the front door mail slot and hoping something splashes into the kettle in the kitchen, on the other side of the house.

Had they issued those amounts of money as helicopter money instead, I think we would have seen something quite different.