As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.
I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.
That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…
I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.
