On Nov 25, 2012, at 8:57 AM, "Jordan Hayes" <jmhayes at j-o-r-d-a-n.com> wrote:
> Nathan, in response to Doug, writes:
>
>>>> "The Fed could print the money if it wanted to, but
>>>> at some point it'd end up like a Latin American country
>>>> in the 1970s with a 1,000% inflation rate. We're nowhere
>>>> near that now, of course, but you can't do that shit forever.
>>
>> This is a misleading presentation of Federal Reserve policy.
>
> Not just that, but it's also a misrepresentation of history and economics.
>
> "at some point" -- say, at the point where the US loses control of its own currency and, like the "Latin American country in the 1970s" um, denominates all its debt in, what, Yuan?
Britain was once an imperial power that did whatever the hell it wanted. In the 1970s it was reduced to an IMF program. Decay often takes time but reserve currency status isn't forever.
Doug