My Own Little Conspiracy Theory

I read Marketwatch.com habitually for news (with little or no meaningful analysis) about the American markets, and I always get a laugh from the conspiracy theorists who comment on the stories. If I had a dime for every time I've heard about the Plunge Protection Team, government manipulation of all types of economic figures, pending economic collapse, and well, you get the idea...

I was recently reading "The Intelligent Investor" and Mr. Graham pointed out that in inflationary environments, debt issuers benefit because they repay purchasers with devalued dollars. Which led me to think of a plot which would explode all over the Marketwatch discussion boards. It goes something like this: the unsustainable U.S. Federal debt is a well documented fact (see any youtube video of the Comptroller General of the United States for testimony to this). My conspiracy is simple: the U.S. Federal Government sees this mountain of debt they will never be able to pay off and note that trillions of it is held by foreigners. Therefore, they collaborate with the Federal Reserve to engineer inflation in order to reduce the present value of the outstanding debt to the detriment of the foreign debtholders (and I guess the average American).

I'm not saying that I endorse this theory, I'm just throwing my spin into the fray of BS currently flying around those Marketwatch discussion boards.