reply to post by gorgi
The QE games should have devalued the dollar far more substantially than they did, but; we aren't done yet.
The numbers behind the whole thing indicate that we should already be reaching the kind of hyperinflation that occured in the Weimar Republic but we
have a few things going for us that they didn't.
We are still the number one military power on the planet. That makes it tough to toss us around too much.
China has internal reasons to not wish to see our currency fail. We buy all of their stuff. If our currency fails we will not be able to afford it.
Their exporting would tank which would do serious damage to their own economy. They also hold a tremendous amount of our currency. If it tanked they
would lose a substantial amount of "perceived" wealth.
History clearly shows us that printing money eventually takes down the printer. Though I am well aware of that I have felt for a while that we are
uniquely placed in history and that we, at this particular moment in time, might actually be in a position to do this and get away with it. The other
players on the board have almost as much to lose from our sudden economic decline as we do. However, a moment in time is just that. A moment. We
are pushing it.
The more time we give China to diversify their savings holdings, build up alternate markets both internally and in the developing/debt free world --
the more likely I find it that we could eventually see the type of hyperinflation that was a precursor to WWII. And, yes - government targets for
annual inflation are currently holding - but if that levy is breached it will not be a slow build. We could experience all the backlash in a very
short period of time.
But, then we have to ask if we care? If we actually use that time to build up:
Increased internal manufacturing base...which we are doing
Increased energy independence... which we have done and are still doing...
Then we could disassociate ourselves.
And a hostile relationship (be the war hot or cold) would mean we would be morally "justified" in refusing to pay...
They hold 8% of our debt.
How much is this whole sequestration fight over again???
Being an evil genius is not honorable, but on the nights when I think that's who is running the show for the western world, I may not have great
national self esteem but I do feel safe and sleep well.