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The problem is, as a debtor nation our currency is only good as long as we can make our debt payments. If we don't actually produce much of value, that won't b
by blihp 8y ago
The problem is, as a debtor nation our currency is only good as long as we can make our debt payments. If we don't actually produce much of value, that won't be for much longer. We (the U.S.) are currently running an experiment to see how much we can run up our debt while simultaneously becoming more dependent on the rest of the world for just about everything and wondering what's the worst that could possibly happen? Sadly, this experiment has already been run repeatedly throughout history and it doesn't end well.
- dragonwriter 8y ago> If we don't actually produce much of value, that won't be for much longer. But, we do produce a lot of value; we may be more specialized in intangible goods and services, but as long as those are marketable, we're fine. > Sadly, this experiment has already been run repeatedly throughout history and it doesn't end well. Leaving aside disagreement over whether the US is even in he scenario you propose, when has it ever ended badly for a country whose debt was denominated in its own fiat currency, rather than a commodity currency or foreign fiat?