Phil > One way out is to get other countries involved to shoulder the costs.
They are already. Who do you think buys most US debt?! Certainly not the Americans.
In my opinion, if the USD has to devalue seriously there will be big financial trouble, and not only for the US. I know great minds like Stephen Roach, Marc Faber and Richard Russell have said this is inevitable, considering the magnitude of the debt, but I cannot see how anyone benefits if this happens.
The US is no longer primarily an exporting country, as it once was, so, in the event of a devalued currency, there is hardly an advantage to it from increased exports. Anyway, by no stretch of the imagination can the US compete with China. Meanwhile, imports will cost more and, although they will fall in extent and in their value in foreign currencies, may even rise in dollar value. It is most likely, however, that foreign countries exporting to the US will be the losers. Further, since most of the debt is owned by foreigners they will lose again when the USD falls.
Thus, it's my argument that devaluation of the USD benefits neither the US nor foreign countries --- so why do it? To benefit goldbugs?!!! Hardly a reason.
Interesting that war no longer seems to be the money-spinner for the US that it once was. Or maybe it is and, if it were not for the wars, the economy would be a lot worse. One can't be sure. Meanwhile, as you say, all expenses are now written down to the war which makes them "legitimate". But everyone knows the whole thing is just a BS story however they do the book-keeping.
I just keep wondering how long they can keep hoodwinking the American people? Maybe, it seems, forever --- because what choice have they?! Better a crazy life of make-believe than to wake up to reality in the street.
Reminds me of Walter Mitty.
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