On a sunny day (Fri, 08 Oct 2010 22:18:21 -0500) it happened flipper
wrote in :

On Fri, 08 Oct 2010 17:53:50 GMT, Jan Panteltje
wrote:

On a sunny day (Fri, 08 Oct 2010 10:48:09 -0700) it happened Jim Thompson
wrote in
:

Hilarious "Solution" to Budget Deficit:

Sell California to China for $10 Trillion ;-)

Devaluate the US dollar.

Sure. And China will keep lending for Obama's projected, as far as the
eye can see, $1.5 trillion annual deficits when being repaid 10 cents
on the dollar.

That is not what will happen if you devaluate the US dollar.
First is that US exports will get cheaper,.
Imports from China to the US will become more expensive.
In the internal market little would change.
For import of energy, mainly oil products, US has conquered Iraq,
enough oil, it also has puppet governments in some other small oil producing states in that region.
So that would be secured (with some force if needed).
The trade deficit would be significantly reduced, as well as the US debt (relative to the lenders).
More people would buy US products, as imports from overseas would be more expensive.
That would stimulate the internal production, and create more jobs.
That in turn would reduce the flight of jobs to other countries.
Remember that it is not the Chinese currency that is 'undervalued',
it is the US dollar that is way over valued.
Over valued because of US printing ever more dollar bills.
This should lead to inflation, but not much sign of it.
It also should lead to a lower dollar relative to other countries that do not print so much money, but no sign of it.
The sign on the wall is the rise of the gold price in the last few month...
Nixon decoupled the gold value from the dollar, and since then it is just paper...
Many countries have had to devalutate their currency over time, and it helped them to get out of the pits.
UK no so long ago,
China would be hit, as it sits on billions of US dollars, so would Japan.
Germany would be hit too as it largely depends on export to the US.
Germany will need oil, and may attack Russia again, Japan
could side with it, and US could sell weapons to everybody, as that,
except for the MS win[!]do[w]s disks, is their only export product.

Sounds bit like a pre WW scenario,.


Germany already tried that, destroyed their economy, and ended up with
Hitler.

Not really, Hitler saved it from being a very poor country with big debt from WW 1 to a very strong
industrial country, that is why Hitler had so much support.
Hitler made the mistake of attacking Russia, like Napoleon before him.
Germany, in the end, came out of it on top, with Marshall help developed into
one of the strongest economies in the world.


You really think a rerun is a good idea?

The pendulum of history is bound to swing, history will repeat itself it a way.
In electronics we call such a system an oscillator, there is positive feedback, no setpoint,
that is real 'values' do not exists, you see in time of war human values shift, ethics
go out of the window, it is a jungle, the strongest survives.
And the strongest is the one who is also able to let go of false values and concepts such as the holy dollar.

Nature unfolds, you have no choice, I for one do not believe in 'free will'.
Stars get born, starts die, new stars get born, nature unfolds.
Yes things repeat themselves in a way.