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That would be more or less equivalent to defaulting on government bonds, in the sense that the latter are only backed by the buyers trust that the US will pay t
by niemandhier 9mo ago
That would be more or less equivalent to defaulting on government bonds, in the sense that the latter are only backed by the buyers trust that the US will pay them back.
The result would be catastrophic for the US: worst case would be a domino cash in of American debt.
- SilverElfin 9mo agoMany Trump supporters actually believe a collapse of the dollar would be a good thing, and that Trump has a plan, because of (some vague bogeyman about the federal reserve). They don’t realize or want to admit that this would mean they would become poorer overnight.
- B1FIDO 9mo ago[flagged]
- expedition32 9mo agoWell there is that "project 2025" that we were told wasn't real. There's an amusing anecdote about the Dutch queen who asked the prime minister if he read Mein Kampf. Everyone is just desperately pretending none of this is happening.
- direwolf20 9mo agoIt already happened — see Nixon shock — and was enormously beneficial for the US economy.
- nolok 9mo agoThis is not the same thing at all, you're confusing fixed exchange rate with just giving back something you don't own.