Thread: We're Fucked.
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Old 03-17-2009, 05:47 PM   #16 (permalink)
The Rev
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Quote:
Originally Posted by Kompressor View Post
It's ok Rev, China's got our back.

They got no choice.
Actually, if we blow our currency up, they could refuse to roll over their Treasuries, demanding that we print yet more money to pay them, accelerating the inflation. This is what happened in Germany in 1923, when germany printed vast amounts of money to pay war reparations. As the exchange rate sought to keep up with the inflation, they printed yet more, devaluing their currency to joke proportions, much like Zimbabwe today.



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