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主题:大萧条以来最严重经济危机,道指会跌到9100? -- 倥偬飞人

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家园 China has lost $1 trillion

in terms of purchasing power in the last 4 years as most of its foreign reserve is in USD.

Of course the Americans have been working hard to let foreign parties to swallow the problem for them, and unfortunately they have been successful so far especially on the parts of China and Japan.

However, there is a limit for how far they can push the envelope. As the world comes to realize the US dollar is just a worthless piece of paper, and starts switching to hard currency or better storage of value like gold, the Americans will painfully take the consequences - for now over 65% of worldwide foreign reserve is still in US notes, the crash of this magnitude will likely eliminate the US as a financial/economy superpower, which itself is not something Americans can take with ease.

Not to mention hyperinflation will make US people suffer, no matter how much paper money they can print - without an outlet for those cheap paper, the Americans have to swallow those only by themselves. You will see $1000 oil and $10k gold, and you will have to pay $100 for just a humberger - the prices will just rise as fast as you can print the paper money. Because printing itself cannot create fortune or wealth.

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