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03/25/2009: "USA has two options to save its economy: declare default or trigger off war"

Dmitry Abzalov believes that the current situation with the US national debt may end with a new war. The war will destroy excessive liquidity and the current debt.

"The war in Iraq began to delay the US crisis, which started brewing in the US economy at the end of 2000," he said.

The Americans have been trying to raise their economy with the help of military actions for decades, since the Great Depression of the 1930s. A war boosts the nation's industry, even if a recovery is based on defense orders.

[ I'm not an economist and don't quite understand how this works. The last couple of days bring intriguing news first that China wants to undermine the dollar by urging nations to move away from it as a reserve currency, but then China is buying up more US debt. Where's the sense in that? How can they expect to get paid back? ]

http://english.pravda.ru/world/americas/19-03-2009/107263-usa_economy_debt-0