According to Financial writer John Rubino, the long predicted so-called “debt reset” is getting much closer. How’s that going to work? Rubino explains, “It’s not clear that a currency reset (devaluation) will work unless it is coordinated. It’s not just the U.S. It could also be the European Central Bank, Bank of Japan and The Peoples Bank of China all making the announcement about their currency at the same time. If that happened, it would be really disruptive for a short time, but we would come out of it in reasonably good shape. That’s what we should be hoping for because there is no pain free option when you borrow too much money.”
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