Comment Re:To compute what? (Score 1) 238
It's not that simple. If the USA did print enough dollars to repay the debt to China, then it would seriously inflate the dollar.
It would, but only if they put that money into circulation. Inflation is really a measure of the amount of a currency in circulation, not the amount of a currency that exists. If the US government printed a trillion dollars then buried it in a hole in Texas inflation wouldn't tick up one bit. That's the reason why we've seen "big spending" over the last few years but no real increase in inflation.
It would also affect the purchasing power of the average American, meaning that the cost of all imported goods would go up (in dollar terms), not just those from China. Anticipation of the last step is why a lot of large companies are trying hard to build markets in the EU, India and Russia - they don't want to be hit when Americans can't afford their products anymore.
Inflation would definitely do that, but I'd say the real reason large companies are trying to build markets in EU, India, Russia, Brazil, etc is because they want bigger markets and more profit, not necessarily because they expect Americans to not be able to afford anything. And in actuality that may be good for us; our exports would be dirt cheap relative to the rest of the world so we'd start actually exporting something for a change.