but if we devalued it ...to say 50% of its value .that gives you 2 dollars value for one dollar.
therefore your debts are now worth half of what they were in real (domestic)terms
Our international debt remains the same value.due to exchange rates. Our domestic debts are halved ... but the important point here is debt is halved when your income remains the same. Inflation cant occur because of wages freeze and ban on g&s rises.
obvious implications for trade good in some areas bad in others.But the overall cause of this mess we are in is overburden from debt.This is a surefire way of reducing debt instantly.
exampple is zimbabwe ...i bet you anything they wished 20 years ago they had borrowed a million dollars from the bank with a repayment date of today.milllion dollars today in zimbabwe is worth only a few cents.
