“pp-I agree with the basic premise of the report but where it goes wrong is when it talks about hyper-inflation. This is a big debate in the econ-dork world however I’m firmly in the deflation camp. They won’t have any luck trying to re-flate by normal means and the world won’t accept dollars if we just print to pay off debt. The most likely scenario is the dollar will lose reserve currency privilege. There has been increasing cry’s from around the world on this recently. Actually this will devalue the dollar as much as hyper-inflation just technically we will be having deflation with massive devaluing. Either way it’s third world really fast.
The head of the GAO put our a report late last year saying back then before the bailouts that we could not service our debt after 2009. I would assume after putting several trillion more on that has moved up to about early 2009.
The dollar is dead dead dead. No doubt about it.”
I agree, A. The hyperinflation issue is one of much debate. I’m not saying — nor is this report saying — that the reflation efforts will work. They will most certainly fail. And the rest of the world will not accept dollars.
If the dollar is dead dead dead, as we both agree, then with what will we re-pay our debts? Our mints are even running low on gold. That is the problem here. You run up a tab of $50 trillion, and no one wants to take your money. The only option left is to default.
The reason to pay attention to the GEAB report is that they have been prescient about everything that has come to pass.
