Currency devaluation would actually be good for the US as it would make their exports cheaper and imports more expensive. This would allow them to rectify their trade imbalance and start paying down some of their debt.
The only problem with the plan is that so much of their debt is owned by foreign interests. If the dollar gets devalued they will be none too pleased and may start dumping their US bonds which will raise interest rates and you not only get currency devaluation you get massive inflation.
|