We are not Weimar; and its not the end of the world.germany after wwi was a defeated,decapitated corpse,the peace treaty imposed on it was designed to keep germany down,french occupation of the rhur industrial zone lead to a stike by german workers with the approval of the gov. that then printed money to pay striking workers.A fiat currency depends largely on gross domestic production to give it value.german gd production just about halted.
The dollar could loose lots of value,but unless the US
shut down it would not become valueless.
America owes money largely in its own currency ,which it can devalue as needed.
Dollars wont disapear, because a sold security will be changed into another currency electronicly when it is repatriated,anyway they would'nt want dollars would they?
America is the superpower.Nobody is going to war with us over a financial crises.Nor are the japanese and chinese going to come over and repossess our SUV's, and stereos.They just will not loan us money without high rates to compencate for the risk they take on.
The hard part is coming to grips with our own shattered dreams and expectations,business will reorganise,people will loose jobs or earn less and spend less,but maybe they will be the wiser for it.
The gov hires a third of the US workforse and has the power to initiate work programs to underwrite more jobs.It has programs already in place for alleviating the unemployment ,starvation and homelessness that plagued depression years.
Russel IMHO really has missed the boat in his comparison. |
