House of Paine

the mind of a scamp

(came across this 
in the comments
of a big foot's
    blog site

  it's my kinda 
  big horizon
   thinker-schemer....
                   practical joke  




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first off
 
   he clears 
          his  good name :

"I am not an economist"


then he lays out the play situation:


 "the Asian central bankers
 are loaning us large amounts
 of money in order to keep 
their currencies 
artificially undervalued"

then he sez what he hears :

 "Eventually this practice
 will have to come to an end 
and 
the dollar will plunge in value "

next
 he sets the hellish climax in concrete 
              why a nice question :


"If the US borrows 
a large amount of money
 from the Asians 
and the dollar eventually
  falls
say  50%
 wouldn't
  that be roughly equivalent
 to a loan with a –50% balloon write off ?"

 which can only be answered with a 
                          absolute yes

now he springs his scheme :

" If that is so
 wouldn’t it then make 
a lot of sense 
for the US to borrow
 an extremely large 
sum of money 
from them 
and  invest it
 in a one time project
 with a decent payback over time ?"  

        indeed indeed indeed 


 
then he gives a cunning for instance:


"Under those assumptions
 wouldn’t it make a lot of sense 
for the US to go into debt
 for  say
a few trillion dollars 
and 
 fund an alternative energy system ? " 

his pay off punch line :
 
"When the dollar crashes 
we would own 100% 
of all the benefits 
of such a project
 but the Chinese 
and other currency pegging countries
 would  have paid for nearly half  of it"

then with a silent snicker:

 
 
  " What am I missing here"



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