Quote:
Originally Posted by nailer
There are no capitalist rules, although Capitalism does indeed "rule". As such "they" make the rules. Markets reacted and here we are a quarter century later dealing with a new set of crises impacting our economy.
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At some point there has to be a default...the ballooning debt
demands it. There was an unofficial one in 1971...the smart beurocrats around Nixon saved the day. Nixon took the dollar off the gold standard after the massive spending of the previous administration put the dollar in peril.
He made a genius deal with the Saudis which in effect forced others to use dollars, facilitated printing and lack of discipline. In other words made it easy for the US to live beyond its means.
Now even the Saudis are questioning the arrangement.