-revalue the dollar (one new dollar equals TEN old dollars)
-remove our military forces from Europe and Korea
-finally transition to a nuclear-electric economy (and end the use of petroleum imports)
-default on our foreign debt (ala Peru, in 1988).
Seriously, we arein a strange situation: China wants to keep exporting to us, yet doesn’t want to buy anything from us…so either they accept green opieces of paper, or shut their economy down. Like the old saying " If you owe $100 and cannot pay, you are in trouble. If you owe $1000000 and can’t pay, the BANK is in trouble".
Worst case scenario? We’d pay them off. Granted, it would be a huge expense (a rough estimate would be that we would have to quadruple government revenue) but it would only be a single year.
This post set off my contrarian instincts. A few days later, “2005: The year of the falling dollar” was a headline in Yahoo’s most emailed news story." I’m a retired speculator and really don’t follow markets anymore, but if ever there was a classic contrarian play, this is it. I shorted euros big time. So far it looks good but Im gonna lock in some profit.