Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Horgad who wrote (109924)	1/19/2015 12:42:35 PM
From: Elroy Jetson	Respond to of 217652

A nation which owes a lot of debt denominated in their own currency will see the value of their currency decline slowly over time. We saw this sort of decline in the value of the Dollar between 2000 and 2008 when the government spent and incurred dramatically more debt without much regard for the future of the nation. The U.S. Dollar is now recovering from some of this damage. A nation which owes a lot of debt denominated in other currencies will see a sudden and catastrophic collapse in the value of the currency the moment they can no longer meet their debt payments. Continuing to borrow in foreign currencies leads to an ongoing value plunge in their own currency and hyperinflation in their economy. A recent example is Russia which has seen the value of their Ruble decline by 2/3 with inflation already at 11.5%.