In the National Interest - what a joke!

[DB008]

How will the USA be able to pay interest on Bonds sold to foreign countries? Keep printing more money?

The USD will lose even more value than it currently is.

If the USD then devalues, consumers in the US will be paying more for goods produced in China. Production in China will slow down due to consumers buying less, and this will also have a knock on effect for demand, including Australia.

 

[Knobby22]

How will the USA be able to pay interest on Bonds sold to foreign countries? Keep printing more money?

The USD will lose even more value than it currently is.

If the USD then devalues, consumers in the US will be paying more for goods produced in China. Production in China will slow down due to consumers buying less, and this will also have a knock on effect for demand, including Australia.

You have to remember that the wealthy in the USA are much richer than ever and the US$ falling will only have a small effect. It is the destruction of the middle class that worries me.