Can the American dollar hold its value in the face of spiralling debt.?
Up to a point the dollar will hold its value. The US has been considered the currency to compare against others in the world, and the dollar has been somewhat stable and oil prices are traded in dollars. The dollar has been considered the gold standard by which all others are measured also in part due to the tremendous amount of imports we consume compared to what we export, hence other countries hold our debt. At some point in the near future we will be printing money and have debt exceeding our ability to pay interest on what we owe. China and others are supporting our over sized appetite for consumption by owning our debt which will begin to cost more in interest as our ability to sustain our increasing debt is not possible. At he current rate of increase in debt service, other nations will abandon the dollar and go elsewhere as even interest rate increases on our debt will be unsustainable.
