How can that escape route close? The debt is denominated in dollars so if the US govt wants to monetize the debt it can do that, the dollar will fall on the exchanges but that would be no bad thing from the standpoint of boosting employment within the US. ________________________________________ From: [email protected] [[email protected]] On Behalf Of Lakshmi Rhone [[email protected]] Sent: Monday, August 08, 2011 7:34 AM To: [email protected] Subject: [Pen-l] downgrade
http://economistsview.typepad.com/economistsview/2011/08/retired-moodys-sovereign-rating-director-the-sp-downgrade-is-unwarranted.html Interesting though that there is no comment on the monetization of the debt, devaluation of the dollar as a result of debt build up. That's partly what the exorbitant privilege has allowed the US to do--inflate away its debt; that escape route may be closing faster than we think. The University of Glasgow, charity number SC004401 _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
