16 I was thinking about what would happen to a country[ Chyna] who owned a countries debt [America] If they inflated or devalued their currency......Who knows everything about coming back from a bankruptcy? (www.thebalance.com) ? Notable posted 3 years ago by ShmellyTunaMelt1 3 years ago by ShmellyTunaMelt1 +16 / -0 4 comments share 4 comments share save hide report block hide replies
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If US inflation devalues the dollar, then the US wins - they pay back debt with cheaper money than they borrowed. That is why interest rates go up during times of inflation.