"nearly all, if not all if the US debt is US$ denominated. Thus it can inflate its way out of trouble."
This is some what true, however I would like to add something that many are failing to consider..
In layman?s terms and somewhat common sense consider this:
The US write their own IOU's, due to the overwhelming debt they seemingly owe them self to substantiate their existence in world trade when will enough be enough???
The printing presses have run hard over the last couple of years, one could easily look up the US dollar as a share price for a company, however how come they hold there ground due with soooo much dilution, and lets face it the countries assets have less value to when the dollar was high...not like any share price I have ever seen, dilution with out true prospect causes less value in the SP
How is it that they continue to be a dominate country as the one to look to for guidance in the market place, when in truth they should be heading for historic lows in their dollar value...
The only way I understand they are achieving this IMO is via WAR, WEAPONS, MANIPULATION, in all truth they stand as the number one BULLY in the WORLD...
When the GFC was really hitting hard countries (governments and Individuals) turned to some sort of security, GOLD being the number 1 safe haven in most circumstances through out the GFC... Though the POG was considered to jump harder due to the US dollar falling on its butt the POG was kept under control.. Who did this?
Russia and China were buying up Gold like it was going out of fashion, At one stage Russia and China made a unified statement that some sort of gold standard needs to come back into play (can provide links to back this up if you don?t believe me, or just google it), fact is they had enough of the US printing money for nothing, what gives them the right to hold them self above water when other countries have been in desperation for decades... why cant Africa print there way out of trouble, lets face it they have excellent resources in there ground...
I will make a wild assumption here, as time goes by, and to far down the track, certain countries like Russia and China will stand up to America and say "We have had enough, what gives you the right to dominate the world currency, who do you think you are."
Threats could take place, and for all we know they already have... what scares me is, the next real war will be a few buttons pressed... yeah I could be way of the mark here, but think about it, how can the US keep getting away with this... eventually some one will have enough, my guess will be Russia first...
Who is going to stop the America injecting another trillion or 2 if they desire to...
Truth, if you had $100 and you needed $200, you had excess to copy and print so paper and ink come to be and wham!! Another $100, you write yourself I owe myself $100... does this really make sense... why would I pay myself back really, in fact I would more then likely think that was damn easy I might as well print me of a million.... who will stop me?....
I think we are headed for some real confrontation among the nations soon, and I hope and pray Australia sit back on this one... we so don?t need to back America up on this issue, in truth our dollar is worth more, but in saying that our mining sector suffers with true profits via exportation being valued against the US dollar...
I still hold strong some sort of one world order will come into play; some sort of one world currency backed by gold is not out of the question... I have no idea what tomorrow really holds, however the jigsaw puzzle is slowly coming together...
All the above is just my opinion, some of it based on national events that took place in 08-09....
