I've never been able to get an answer to this question, if the world said no to the u.s. gov't were not gonna loan you anymore money, what would happen?
Equally as interesting would be the world's reaction if we stopped sending them money. That, too, will happen as soon as buying our bonds stops.
I've noticed a large number of career politicians retiring. For them to give up their phoney baloney do nothing jobs makes me think something comes our way.
They Got theirs, and are now getting out, while the Getting is still good, OR before the "Folks back Home", figure out their scam, and go looking for them, with more on their minds than a handshake.... .... YMMV.....
Those in the know, career politicians among them, have gotten what they can out of the system. They see the inevitable and are getting out, like Bruce said, and going to ground. THey intend to rise from the rubble of the disaster they helped create to "restore order" with their "long years of experience" and "reasonable approach to solving the crisis".
If and when they or their offspring rise from the rubble, it will be time for a little game I like to call: "Whack-a-mole"
like the Nosler comercial said...."happiness is a red haze". whack a mole with a 22-250 from a long ways out....
The answer is, drumroll please: Fed is the Biggest Holder of US Debt - MarketBeat - WSJ The Federal Reserve is now the largest holder of debt. That is, they are buying their own debt. I effect, we are printing money since nobody else is buying.
On their own full faith and belief, and watch the interest accumulate in all directions with no hope of ever paying off the debt. Wonderful circular logic. Isolate each step, then ignore the climb up the hill. Looks like the non engineers don't believe that the Second Law of Thermodynamics applies equally well in finance. TANSTAAFL
The Big Money folks do the same thing with Imported Oil.... it loads overseas, and then starts the trip here.... while it is in transit, that Oil is bought, and sold, MANY times, with a little bit of profit taken on each transaction. So when it gets here to be unloaded at the Refinery, it is, significantly more expensive, than when it left the Oil Terminal.... .....
It's hard for me to wrap my head around something that does'nt make sense, that has no logic to it. The feds produce money out of thin air and then are paid back with interest on it, the best crime syndicates in the world can't beat that!!!
It's already happening. The Fed buys treasuries at auctions all the time. That's why China is so upset because when they do it they print money to buy the bonds which devalues all the rest of our money supply. And, by the way, most of the people not running for office anymore are those that voted for Obamacare. You can bet your sweet butt they are leaving to collect their end of the deal for selling their vote. God, I hate politics and politicians.
