CDZ Is the U.S. like Germany in 1928?

Discussion in 'Clean Debate Zone' started by jwoodie, Aug 12, 2019.

  1. jwoodie
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    jwoodie Gold Member Supporting Member

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    You seem to have forgotten that the US was a creditor nation, whereas Germany was a debtor nation whose loans were suddenly called in.

    Combined with its huge WW1 reparations payments and lack of gold reserves, this caused Germany's currency to become practically worthless.
     
  2. toomuchtime_
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    toomuchtime_ Gold Member

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    The US debt can't be called in before its maturity date. The bonds can be sold on the open market, but payment can't be demanded by the maturity date. Should there be a global recession or depression, what would happen is what happened during the recent recession, and that is the Fed will buy the bonds the Treasury prints to support the government. Even when there is no recession, the Fed does this routinely to keep interest rates down.
     
    • Funny and Agree!! Funny and Agree!! x 1

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