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fjfaase | 1 month ago

In case of a war, the USA will go broke due to the enormouse state dept and the USD will crash. That dept is largely owned by EU countries and the PRC due to trade deficits.

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JPLeRouzic|1 month ago

That the USD may crash during war time is not important, it's not the same economic rules that apply during war time and if USA wins that crash will not be important.

But from now most nations and other economic investors will be hesitant to buy USA's debt, as its behavior is less and less predictable. The main problem is what to buy instead.

Zigurd|1 month ago

Correct. Europe could adopt Keynes's "bancor" within months and that would be more devastating than dropping a bomb on DC.