I agree. The US can't simply devalue one day while the annual deficit at the level it is today. It would shock the bond market, significantly reducing the number of buyers of new US debt issuances... buyers we need to continue to finance deficit spending. The bond market may ultimately reach this point if the deficits aren't brought under control, but I don't think the government will move to devalue in a one time event anytime soon.
I enjoy reading Jim Willie because his work is thought provoking, but he's written about rumors from his reliable sources before, which have subsequently not come to pass.