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Really downvoters. You think we need more debt and to ignore the the housing crisis? Really?



I don't understand the jump in logic you are making from "the US government is at risk of defaulting on it's debt" to "the US dollar is at risk of failing as a currency". Can you explain this?

You seem to be jumping from one conclusion to another which much reasoning to link them, and then drawing another conclusion from that.


I'm afraid there is no jump. If the US defaults interest rates will rise but they can't as the market is dependant on cheap money. That why interest rates have been at 0% for a long as long as I can remember and it is also why QE1 and QE2 were done. To increase the supply of cheap money. If the US defaults the dollar will crash. Look at what happened to Argentina in the late 90s. No I don't think the chances are very significant now but the conditions are certainly there for it to happen. I'm sure a whole paper could be written on this but I am only trying explain where I am coming from.




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