Quote from rs11942:
See now, these types of arguments make me lose a little faith that you are making your move for the right reasons. I mean, this is just amateurish/media commentator level understanding of the f/x markets and the interrelations of trade imbalances and relative interest rates.
First off, if this were accurate, you could short the dollar with impunity and make a billion dollars...go mortgage your house, short the dollar and call me in 5 years...you'll see what I mean.
Secondly, If you're going to cite the national debt, how about recognizing that we also have a GDP that is 1/3 of the worlds GDP and that our militrary budget is the sum of the next 24 countries' combined. The U.S. dollar, and U.S. debt obligations are the world's safest investment...period. It is not a topic for debate, it just is...go look at credit spreads. It is a fact.
Lastly, since we have the biggest GDP we are the most capable of repaying our debts as a nation. And since we have the most advanced military in the world, we can always point a gun at a weaker country, that hasn't invested in defense and take their shit at will. It never has to be done, as long as everyone knows it CAN be done. If mike tyson owed you a hundred bucks...are you going to go over to collect, if he tells you he needs to "restructure" his repayment terms?