USD is heading towards a 40% devaluation.<p>I wasn't convinced at first, but it makes sense after you think about it on a longer time scale.<p>The amount of sovereign debt is just unpayable in any real terms ( basket of goods ).<p>75 million baby boomers ! with rising projected fiscal deficit from here on out.<p>The easiest solution is to let the currency take a hit and default nominally.<p>It won't cause a huge amount of inflation, only ipads, and foreign imported goods gets slightly more expensive.<p>I also do not think other countries devalue as many pundits think.<p>CNY has been trying to gain purchasing power, as a side karma benefit, the CCP gets to own people taking money out of china and moving into USD, when USD falls by 40% then nowhere is safe ! It reduces pressure from chinese citizens to move assets abroad.<p>The amount of dollar denominated debt globally is just too high, so trump is right.