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Or as Chris says - simply print more money to replace what has been wiped out.

You can't be me, I'm taken
by Sven Triloqvist on Fri Sep 26th, 2008 at 05:38:24 AM EST
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whcih I a afraid will be interpreted as a US default geenratinga US dollar run..., r at elast this is what I read... Am I right or wrong?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Fri Sep 26th, 2008 at 05:42:47 AM EST
[ Parent ]
That would be the risk there. Not to mention possible inflation at home, depending on what happens to the money.
by Colman (colman at eurotrib.com) on Fri Sep 26th, 2008 at 05:44:13 AM EST
[ Parent ]
Internally - in the US- there can be no dollar run, only inflation. From the POV of the US mortgage payer, there is little difference.

Outside -wwwoooa - that is different.

You can't be me, I'm taken

by Sven Triloqvist on Fri Sep 26th, 2008 at 05:46:36 AM EST
[ Parent ]

H/T Jesse, St Louis Fed (Adjusted Monetary Base, link to pdf chart)

Diversity is the key to economic and political evolution.

by Cat on Fri Sep 26th, 2008 at 08:36:43 AM EST
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