Devaluation equals default....... By virtue of the US$ still being the de-facto world currency, any overseas entities holding US$ debt have already seen their assets' values slide versus their own currencies by between a third and a half. It is not very long ago that the Euro was US80c, now it is close to double that. This collapse represents the world's biggest effective government default in history - a fact that has passed almost unnoticed in the media.
devaluation 1 : an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency default 3: a failure to pay financial debts
Excellent Commentary All .............................................................................. Lucrum wrote..... devaluation 1 : an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency default 3: a failure to pay financial debts .................................................................................. Big Loss.. equal Devaluation.. equal Default Big$ loss ..equal Big$ loss..... Ah legal bullshit semantics......
Legal? This is just a matter of actually knowing term's definitions and precisely stating what you mean. Besides, are you aware that as soon as the subprime issues turn up we are going to jack up interest rates to combat inflation? The market is pricing in a hike as early as Dec. Couple that with a weakening Eurozone and you just might see a strong reversal in the USD.
Excellent Commentary, ScapGf.......... ......................................................................................... The US dollar would definitely approach normalcy at a 7% 90 day tbill roi......