https://nationalsecurityforum.org/2013/01/11/the-fiscal-cliff-compromise/ Forum for discussing national security issues. Tue, 17 Oct 2017 23:31:08 +0000 hourly 1 https://wordpress.org/?v=6.6.2 https://nationalsecurityforum.org/2013/01/11/the-fiscal-cliff-compromise/#comment-35 Sun, 27 Jan 2013 07:01:51 +0000 https://nationalsecurityforum.org/?p=1395#comment-35 Al these debates in Senate about the national debt is very interesting and not fully undestandable to me. Of course, the USA can afford this: the whole world depends on dollar and can’t go out of it. There is no other way for all the world but to support dollar since we all have it: countries, individuals and if the US economy falls down we all become poor, especially China will loose not only trillions of dollars, but also a huge market.
May be all these debates aim to weeken the dollar, its value, so the debt will become lighter, as it had been done many times before? It will defenetly help: nowdays 16 trillion are equall to 5 trillions many years ago when the country had this level of debt. So the whole world keeps supporting the US and finance all its spendings. The whole world feeds the US economy. The US prints dollars and lends them at some percent, but also inflates it. So printing $1 now that is worth $1 in several years will worth only 60 cents or less. The whole world will pay for this, not the States!
But what is dangerous to the US economy is that slightly the other countries trying to become independant from dollar. The “dollar” market shrinks: now for example in Russia people do not use US dollar much as it was ten years ago. We do not buy it unless we need to go abroad (and not to all countris – pretty often people buy Euro). The trust to dollar is so to say forced: not too much alternative. And it decreases.
Germany doesn’t trust too much to the US economy anymore starting slightly to take their gold back home. When other countris start taking their gold back home this will weeken the dollar more. From the one hand it is good for the US economy and US debt, but from the other it presses on the trust to dollar!
Hovard Latnik, the head of Cantor Fitzgerald says fully correct, that the USA will keep weekening the cost, the value of dollar devaluating it as they have done before. This will happen and is happening. And the whole world keeps silent to all this devaluation. So what for to debate in Senate endangeuring the Economy if the wolrd keeps silent and lets to do anything?
When the world stops buying dollar the US economy will go to pieces. It may happen in the future and may not. It all will depend on the USA and its actions. I would not bring to much attention from the world to national debt of the US and any Senate debates.

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