Friday, July 15, 2011

The US debt crisis

Perhaps there is method in this madness? If the US defaults the US Dollar falls. And that means US manufacturing becomes cheaper for foreigners and foreign goods (read China and India [and Canada]) become more costly. So US employment goes up and... Obama is re-elected?

http://bit.ly/nkexmm

2 comments:

Stephen Downes said...

It would be a very dangerous method. Interest rates could well increase as a result, which would sink the economy.

Anonymous said...

Even if the US doesn't lift the debt ceiling there wont be a default on the debt payment,because their 14th amendment of the constitution doesn't allow it! Read it here section 4!