Krugman’s post is here, with an acknowledgment that we also possess nukes.
We’ve been on that theme a while. A few examples:
America: Banana Republic Watch May 6, 2007
End of Dollar Hegemony Coming? May 22, 2007
“We may just have started to feel the pain” March 6, 2008
A secondary theme:
Tthe US is in very much the same boat as Thailand and Indonesia in 1997, during the emerging markets crisis. And although the US arguably has a more diverse economy, the main things that differentiate us from them is the dollar’s reserve currency status (which means if we implode we do a great deal of collateral damage) and our nukes.
“Debt Reckoning: U.S. Receives a Margin Call” March 15, 2008
“Eight hundred years of financial folly” March 23, 2008
From Imperialists to Third World? May 30, 2008
It took no particular insight to see these warnings.