Read the whole thing.World currencies should be devalued overnight.
It can be done on a country-by-country basis, but a coordinated devaluation would work best. A devaluation of 30% would raise the dollar value of all assets by 43%. A $200,000 home with a $230,000 mortgage would become a $286,000 home with the same mortgage. Presto! The homeowner who was $30,000 upside-down now has $56,000 equity and a good reason to make his payments. Both the homeowner and the bank are immediately better-off.
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In 1933, through a series of gold-related acts, culminating in the Gold Reserve Act of 1934, America realized a dollar devaluation of 41% when the price of gold was adjusted from $20.67 per ounce of gold to $35 per ounce. America, like the others before, had its economy bottom and recover as a result. Of the larger economies, only the French and Italians continued to adhere to the gold standard, and their economies remained depressed until finally, in 1936, they allowed their currencies to devalue, and their economies then recovered.
Devalue correctly (as it was done in the 30's), and there will be a one-time hit. Devalue incorrectly -- or pretend there's another way out and thereby ignore the problem altogether -- and the money will go to zero. Based on the general drift so far, caricatured by this comment:
This has to be one of the most ridiculous articles ever printed in Forbes. What drivel. Guaranteed to cause massive horrendous inflation on a level not contemplated by the writer or should I say drooler of this article. Im so glad I cancelled my Forbes subscription. Forbes needs grownup that can actually think writing their articles.my money (as it were) is on the latter.
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