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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: Ahda who wrote (15656)9/26/2002 5:18:18 PM
From: sea_urchin  Read Replies (2) of 80960
 
Darleen >who is going to be able to pay the debt.

I have no idea. In fact, I believe total US debt ie public plus private, is in the order of ten or more trillions of dollars.

That's why, if deflation prevails now and the value of assets falls against the value of money, it is said the debt is actually unpayable.

For this reason, many have considered that only way the US can escape from the debt bind is through inflation and a serious increase in the price of gold. This would be associated with a further devaluation of the USD.

However, Europe and Japan, the US' major debtor nations, can't revalue their currencies because their economies are so bad. So the USD is stuck at a higher value than is good for the US which, in turn, has to borrow foreign money at interest rates which are higher than most other places.

And, so the debt continues to mount at an exponential rate.

It's hard to believe that Alan Greenspan, the creator of the debt bubble, received a Knighthood at such at time.
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