The discussion also usually doesn't focus on the fact that the costs of the stimulus haven't been felt yet. It could just be higher taxes and higher interest rates. But it could also be that treasury bills are no longer purchased by foreign governments, and the shell game where the government essentially buys its own bonds will be harder to hide. That is much more serious problem than a crippled mortgage market. I'm looking forward to politicians justifying debasing the currency for "national security".
I just hope that the devaluation of the dollar doesn't coincide with the election of the first latino president. It would be funny as hell, but utterly unfair.
huh? Is that a joke about the predisposition for strong men in latin america, who often have devalued currencies? Many, many countries have experienced extreme inflation. Even the US in the 70s and early 80s was pretty extreme. http://www.usinflationcalculator.com/inflation/historical-in...
The joke had nothing to do with strong men. Everything to do with how devalued currencies in Latin America tend to be, and how many people in the USA are afraid that the growing Mexican presence will bring us poverty.
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