Message:

<p>[QUOTE=&quot;Cloudsweeper99, post: 1066973, member: 3011&quot;]South Korea, Thailand, and Indonesia were borrowing foreign currencies in an attempt to keep their currencies pegged to the US dollar in an attempt to attract foreign capital.&nbsp; Eventually, this failed, and their currencies fell.&nbsp; This has no bearing on the debt default scenario for the US Treasury market where we do not borrow in foreign currencies, and allow the dollar to float.&nbsp; Different conditions lead to different outcomes.&nbsp; People can guess what the policy reaction will be.&nbsp; I think they will choose inflation, but it could easily go the other way.&nbsp; Nobody knows.&nbsp; But the debt default itself will be deflationary.&nbsp; I don&#039;t see any way around that.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in