US will not go broke for the moment because no one can replace
the American consumer.
China and Japan will continue to lend US the money she needs
because they themselves require the consumer markets that their own
economies have come to rely on.
US has also made the unwise decision to print money. If they
continue to debase their currency it will mean that the wealth of
US as a whole would be reduced significantly.
Reason being that everything in US, stocks, housing is dominated
in USD. So a reduction in USD would mean a hit in the wealth of US
consumers which may lead to a prolong slow down.
There is little trade advantage for US in debasing their
currency. They are doing this simply because helicopter ben has
absolutely no idea what else to do.
Every commodity is traded with USD, this means that a lower
dollar would eventually fuel a very high level of inflation for US
consumers as they find that they are attacked by a weaker domestic
currency and increasing commodity prices.
In short helicopter ben will doom us all in the long run.
