

The Imminent Dollar Collapse Explained to an 8 Year-old - smountcastle
http://falkvinge.net/2011/06/17/the-imminent-dollar-collaps-explained-to-an-8-year-old/

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antimagic
The author does know that the US has never promised to pay back debts in US
dollars in anything other than US dollars, right? There never was any promise
to pay back with "real" money (as if such a thing exists!)

At any rate the US is in no danger of going bankrupt. They do run a certain
risk of having their purchasing power decreasing, but of course their exports
will automatically become cheaper for other countries to buy, which will turn
around the balance of trade.

The real risk is being run by those that are holding large balances of US
dollars - they risk taking a bath if (or when) the US dollar is dramatically
devalued. But then, they knew that going in, so I have limited sympathy.

