Chinese Century
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- Apr 15, 2011
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United States will NOT go backrupt. They'll inflate their way out of their current crap hole. However, their status as the world's reserve currency is nearly at an end, and their living standard is about to take a hit. The problem is when they print money, they wipe out a chunk of China's wealth also.
bankrupt means u have to default.
there are 2 ways to default.
one is to tell ur bondholders u cant pay and restructure ur debt.
second is to inflate ur debt.
when u inflate ur debt, u inflate ur wealth too since both ur assets and liabilities are denominated in the same currency.
china will lose its US dollar investments, but its just chinas investments, dollar is not chinas national currency. china will lose only the investments, nothing else.
US will lose everything, dollar is their national currency, its not their investments, its their entire economy.