Quote:
Originally Posted by redpoint5
The only way to reduce national debt is to reign in spending, increase taxes, or devalue the debt through inflation. Considering China owns much of our debt, which method do you think we'll be utilizing the most? If you think inflation, then hedging against it is a wise decision.
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I think it should be pointed out for clarification that the majority of our debt is not held by foreign creditors, and of the part that is, China is not our largest foreign creditor (that would be Japan).