US Currency drop every day?
- Thread starter leisure
- Start date
Monrox
Power Member
- Apr 9, 2010
- 617
- 588
Those who understand debt know that devaluation is the best way to deal with it. It's not America's problem, it's its creditors problem.
A simple example:
Imagine someone owes you $1000. This money can buy you a flat screen now. When the $ gets devalued, you need $1500 to buy the same product... but you're still owed $1000.
America could care less about its debt and in fact a hyperinflation will benefit it greatly. It will allow it to deliver several cargos of paper, become debt-free and make a money reform afterwards.
Banks went down because they gave unsecured loans. Loaning governments are next.
And when it's said some country is rich, it is the people that are meant, not the state. China as a state is very rich (becaused it is owed so much), but its people are hardly managing above the poverty line. So decide carefully which type of 'richness' you would prefer
A simple example:
Imagine someone owes you $1000. This money can buy you a flat screen now. When the $ gets devalued, you need $1500 to buy the same product... but you're still owed $1000.
America could care less about its debt and in fact a hyperinflation will benefit it greatly. It will allow it to deliver several cargos of paper, become debt-free and make a money reform afterwards.
Banks went down because they gave unsecured loans. Loaning governments are next.
And when it's said some country is rich, it is the people that are meant, not the state. China as a state is very rich (becaused it is owed so much), but its people are hardly managing above the poverty line. So decide carefully which type of 'richness' you would prefer