[quote=jficquette]You can’t default on debt when you control the value and the amount of what its denominated in.

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How do you control value?

It’s not something we can magically create. We’ve been fooled for a long time. All the wealth that is going to evaporate for the same reason the housing bubble popped, There was never any true value, just like the dollar which is propped up by being the reserve currency. Any american holding dollar denominated assets is going to get poor very very quick. This is what revolutions are made of.

As far as amount. That is controlled by debt or printing money. What the fed is doing is injecting them with money so they can actually lend. Here’s the rub american consumers are tapped out and banks don’t want to lend. So that leaves printing. This will not go over with the world. And we ain’t calling the shots anymore. Not after Paulson and crew have sold those ponzi-scheme algorithmic debt vehicles all over the world and practically blew up all the world banks.

The big question is how much will the dollar fall when/if it loses reserve currency? I’ve read up to 90% buy some studies. Needless to say it will be significantly less.

It’s going to be a mean reversion of biblical proportion.