Quote:
Originally Posted by cRiPpLe_rOoStEr
Just look at Venezuela. Much of its oil export output is already compromised to pay China for loans on Dollar.
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What currency are the Chinese loans denominated in? Surely the Chinese didn't let Venezuela borrow money in bolivars.
Every country I can think of that has gone bankrupt or defaulted on their debts owes money in a currency they do not control. If they did control the currency it would be basically impossible to default because they could just print the money to pay off the debt.
On the other side the USA owes all of our debts in US dollars. We cannot default on these debts unless we chose to do so for political reasons. We could quite literally pay off all our debts tomorrow by printing money. That would be stupid, devalue the dollar, and dry up our borrowing opportunities but it is an option.
Today people are paying to loan the US government money - that is a good position to be in.
Venezuela has been a wreck for a long time and is a poster child for mismanagement and corruption.
But this is a thread of gas prices. Rising prices and now falling. Gas is below $5 a gallon again around me. Costco's current price is $4.99