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The US is perhaps the most import-dependent nation on Earth. If the dollar drops in half, prices for many physical goods will basically double soon after, reduc
by rphlx 17y ago
The US is perhaps the most import-dependent nation on Earth. If the dollar drops in half, prices for many physical goods will basically double soon after, reducing buying power within the country, unless credit simultaneously expands 2X (which is what's been happening since ~2001 to maintain our illusion of wealth).
- yannis 17y agoAssuming the rest of the world will not react. The 'exporters' will have a problem and since now they will import less dollars their own currencies will re-adjust otherwise the US will start becoming an exporter of physical goods, industry will be re-vitalized and the cycle will be reversed.
- mpf62 17y agoWhat industry? That sector accounts for less than 20% of US-GDP. Besides that, if the dollar becomes worthless, how will your "industry" pay for raw materials that have to be imported? Of course, you can at least buy oil in dollars ... but what if that changes, too?