[SomeCallMeTim]

Devaluation is part of the plan to pay off the debt? Sorry, that makes the problem x times worse.

I didn't say it's a GOOD plan... but, it's the only hope. Pay back debt with cheaper dollars. Of course, the downside is... cost of borrowing goes up, making the economic growth impossible.

And then.. there's always that risk that the inflation runs away, and get Hyper. We're in a very bad way.

[RipSawyer]

“We’re in a very bad way.”
/////////////////////////////////////////////////////////////

Our new national anthem,

http://www.youtube.com/watch?v=e7X9wUXJtzc

[zek157]

No, depreciation makes the debt more expensive as the dollars are worth more. Inflation is what makes the debt cheaper, although .gov now sells some bonds indexed to inflation.

Imagine you bought a 45K house in the early 70’s. After the Carter years of 10-15% inflation you were paying back dimes on the dollar in the 80’s.