Quote:
Originally Posted by The Demon
If and when the rest of the world stops buying our bonds, we'll get hyperinflation and this is the least of our concerns.
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That would be deflationary most likely unless the government just cranks up the dollar printing press and we buy all our bonds from ourselves. That would would be suicide though. I do think some sort of dollar devaluation may be in play, but, unlike G.D. 1.0 when we had a gold standard, that is hard to do with a free floating fiat currency. Especially when ~80% of the world's debt is dollar denominated (thus propping up demand for the dollar).