Quote:
Originally Posted by Claeren
2) The American Dollars rise is pretty commical. People are buying government debt in USD because it is thought of as safe, yet because there is such an insane amount of that debt being sold it is pushing the currency higher and higher. Yet how can a currency with no underlying value other than trillions and trillions in debt have long term stability?? Boggles my mind. That should be a very interesting thing to watch play out.
Claeren.
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This is exactly what has me puzzled. It's unfair to say it has no other value than debt, but the debt to asset ratio is out of whack and the currency shouldn't be on the rise as it is.
Where does that leave us when the U.S. government can't pay it's debts?