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I'm just explaining that having a weak currency isn't always a bad thing. A default may affect the economy in other ways, but a devalued dollar is not a big deal.
I'll say that having a weakened currency isn't always a bad thing, but 99% of the time, it is. The only way having a weakened currency isn't always a bad thing is if all other significant currencies are weakened to a similar or worse level. And the only thing that would make that happen would be a global economic catastrophe.
It is ALWAYS a bad thing. You've just pointed one aspect that isn't all bad. It's still a net negative. Name ONE country with a really weak currency that is prosperous and a pleasant place to live. Just one.
If your sentiment were true, all of the countries who were victims of hyperinflation would be living the good life right now.
Although many would perceive a weakening currency to be a negative issue, from a positive perspective the declining value of the Brazilian Real means that Brazilian products are much better value for money, which has encouraged phenomenal growth across the Brazilian industry sector.
Article Source: Weak Brazilian Currency Presents an Opportunity to Invest in Brazilian Real Estate Market
So you essentially just said "It's not always a bad thing. It could be good during a global economic catastrophe!"
That means it's bad 100% of the time, because even your exception is a REALLY ****ty situation.
Brazil has a weak currency compared to the U.S and U.K, but they're one of the fastest growing emerging economies in the world.
Brazil's troubled economy: Stumbling up the hill | The Economist
AFTER a decade of encouraging growth, Brazil's economy has stalled. Without substantial changes to public spending and business relations, the country may lose its momentum
Brazil's economy: A shocking figure | The Economist
AFTER seven straight quarters of low or no growth, Brazil can no longer afford to be complacent about the need for big structural reforms, say our correspondents
A U.S. Default Seen as Catastrophe Dwarfing Lehman
I say print 20 trillion dollars, pay the debt and go on.
What do you think?
No, you back your fiat money (or your hard money) with TRUST. Trust that the nation in question will continue to service its debt, trust that the commodities markets won't take a colossal deuce on what proponents of hard money think is actual currency.
Gold and silver are just shinies. There are FAR more valuable commodities in the world than those shiny metals.
Are you even American...?
Explain to me why we have to pay off that debt now.
No. :mrgreen:
Now, if the US government can afford to be 17 trillion in debt, it could probably afford to pay it off instead of increasing it to infinity. Right?
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