Is this good or bad?
I think its bad. it will destroy the value of the dollar. and this is not good.
It's probably bad, bad, bad — bad beyond what most Americans can even imagine.
So long as the Greenback has been the world's reserve currency, the U.S. has uniquely been able to pay back its foreign debts in deflated dollars.
Here, in Canada, when we faced up to our own debt crisis, in the 1990’s — our currency (the Loonie) was devalued, in order to stimulate exports, and reduce imports. Unfortunately, almost all of our foreign debt was denominated in (mostly) greenbacks. As our dollar went down against the U.S. dollar — we wound up owing more $CDN. It was a very expensive, vicious circle.
BHO likely counted on being able to pay back the money his Administration is borrowing from the Chinese in deflated dollars — effectively stiffing the Chinese (and other creditors) for hundreds of billions of dollars. If future borrowings have to be denominated in terms of some other currency (or basket of international currencies) — then the whole tab will be due.