Is the US Monetary system on the verge of collapse?

Discussion in 'Economics' started by ProfitTakgFool, Nov 28, 2008.

  1. "...a longer-term examination of debt markets reminds us that, throughout human history, regular default is more the rule than the exception. And while sovereign defaults on external, foreign-currency debt are most common, Carmen Reinhart and Kenneth Rogoff demonstrated in a paper released earlier this year...that defaults on domestic debt have happened far more often than might have been expected, particularly in times of severe economic duress."
  2. Has there ever been the case before with a FIAT world reserve currency, that the nation printing that currency laid waste to all its means of production and buried itself in debt buying imports for yet more debt?

    I can't think of any. No nation in history has been THAT stupid before, or I'm sure we'd have read about it.

    But maybe I don't know my history well enough...