A country runs up massive debt. It can no longer pay for everything it promised to provide. What does that country do? Why it devalues its currency! We're not talking about the US are we?
No, today it is
Venezuaela! Boy that's a relief isn't it? Probably so, but don't figure on relaxing too long.
Could the US suffer the same fate? Well, in fact we already have in some sense. Since the turn of the century the dollar is off maybe 40% or so against the Euro and probably a similar amount against the Yen. With the massive debts forecasted in the Obama out-years, with huge plans for increased government spending, with a potential that others will quit buying our debt, it isn't totally outside the realm of possibility the US government would devalue the dollar as a way to devalue our international debt. Of course, who would get stuck holding the bag? You know the answer to that one.
As we have posted before, Obama is transforming the country for sure. Eventually on language will separate us from Venezuela (but even that might not be for long).
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