Where does the Interest go?

[Damocles]

Here we go again. We've already established what fiat currency is.

No, we haven't. You have ignored the actual meaning and insist it is backed by something other than a simple law that says it is currency (the very meaning of 'fiat').

Wait a minute!!!! Fiat currency is used to buy the debt? WHAT DEBT? And if fiat currency is used to buy the debt, why the need for investors/bond holders like China?lol If I were the feds I'd buy ALL the bonds because they cost ZERO(money made out of thin air).

Debt is a promise to pay money, it is what Treasuries are. They don't buy them from themselves, they issue the bonds the government promises to pay.

According to the thread. Correct me if I'm wrong Centinel. We have the American debt. I guess America somewhere along the line ran out of wealth(probably due to war). The Americans needed funds. Along comes the Fed res(Most likely backed by Britain's vast gold reserves). Britain had the world's largest gold reserves and they went missing in action after the world wars......... Started lending money to Americans. Americans sold bonds(debt) to the federal reserve and the reserve gave them money. And the rest is history. Though why start selling debt to the Asians? Did the feds no longer want to back them and they had to look for different markets? But if the feds are making money out of thin air, why not continue buying bonds?

Actually, Britain had the reserve currency at the time, however they no longer do. At the time the reserve currency changed to the dollar, the Brits were borrowing from us, and a study of their economy in the 70s is a good place to go to find out what happens when your particular fiat currency is no longer the reserve currency...

Now if the fed res is not backed by any wealth at all? Why would the Americans give these foreigners control of the economy? Unless it was a conspiracy of the biggest proportions with the Freemasons all in on it. This is a Freemason run site isn't it?

Holding Treasuries does not allow you to "control the economy" it is the tool that they use to "create" currency.

If the fed was making money out of thin air like you say? They would have owned all the world buy now. The fact that they don't, shows there are limitations.

No, they wouldn't. More dollars=less value. this has all been explained before. It is called inflation. See the Weimar republic if you want to know what happens if they just "print more".

Oh....if the SS lock box is also backed by fiat currency, why are they making a big deal about not being able to pay it out?

No, it is 100% "invested" in debt. It holds no other form of investment. Before Clinton finally finished it off when they were trying to say there was a "surplus" it had actual money in accounts, it no longer does. It simply holds Treasury Bonds, which is a "promise to pay" from the Federal government.

 

[Damocles]

Here we go again. We've already established what fiat currency is.

No, we haven't. You have ignored the actual meaning and insist it is backed by something other than a simple law that says it is currency (the very meaning of 'fiat').

Wait a minute!!!! Fiat currency is used to buy the debt? WHAT DEBT? And if fiat currency is used to buy the debt, why the need for investors/bond holders like China?lol If I were the feds I'd buy ALL the bonds because they cost ZERO(money made out of thin air).

Debt is a promise to pay money, it is what Treasuries are. They don't buy them from themselves, they issue the bonds the government promises to pay.

According to the thread. Correct me if I'm wrong Centinel. We have the American debt. I guess America somewhere along the line ran out of wealth(probably due to war). The Americans needed funds. Along comes the Fed res(Most likely backed by Britain's vast gold reserves). Britain had the world's largest gold reserves and they went missing in action after the world wars......... Started lending money to Americans. Americans sold bonds(debt) to the federal reserve and the reserve gave them money. And the rest is history. Though why start selling debt to the Asians? Did the feds no longer want to back them and they had to look for different markets? But if the feds are making money out of thin air, why not continue buying bonds?

Actually, Britain had the reserve currency at the time, however they no longer do. At the time the reserve currency changed to the dollar, the Brits were borrowing from us, and a study of their economy in the 70s is a good place to go to find out what happens when your particular fiat currency is no longer the reserve currency...

Now if the fed res is not backed by any wealth at all? Why would the Americans give these foreigners control of the economy? Unless it was a conspiracy of the biggest proportions with the Freemasons all in on it. This is a Freemason run site isn't it?

Holding Treasuries does not allow you to "control the economy" it is the tool that they use to "create" currency.

If the fed was making money out of thin air like you say? They would have owned all the world buy now. The fact that they don't, shows there are limitations.

No, they wouldn't. More dollars=less value. this has all been explained before. It is called inflation. See the Weimar republic if you want to know what happens if they just "print more".

Oh....if the SS lock box is also backed by fiat currency, why are they making a big deal about not being able to pay it out?

No, it is 100% "invested" in debt. It holds no other form of investment. Before Clinton finally finished it off when they were trying to say there was a "surplus" it had actual money in accounts, it no longer does. It simply holds Treasury Bonds, which is a "promise to pay" from the Federal government.

And before anybody gets excited, this transformation began in the 70s. In this way they were able to take the money that was held to pay SS recipients and use it in the general funds. In this way they "balanced" the budget and budgeted an unrealized "surplus" (we borrowed money to pay interest that year and paid down no principal, there has been no surplus since the early 60s).

 

[wiseones2cents]

No, we haven't. You have ignored the actual meaning and insist it is backed by something other than a simple law that says it is currency (the very meaning of 'fiat').

I'm not insisting fiat money is backed by something(Fiat money is paper money backed by nothing), I am insisting that US currency and debt must be backed by something, making it NOT a fiat currency. Try to keep up!

Debt is a promise to pay money, it is what Treasuries are. They don't buy them from themselves, they issue the bonds the government promises to pay.

You didn't answer the question! I understand debt is an IOU. More then likely promise to pay with GDP as collateral.

Though the FEDS according to you, buy American debt with fiat money, and then get interest on money backed by nothing. How did they pull off that racked? And if the Feds can make endless money, why the need for Asians buying bonds? Are they giving them a piece of the illusionary economy?

America the greatest nation on earth, built on IOUS? No real wealth? What kind of a great nation is that, and why cant Canada build a 100 trillion dollar deficit. You seem to be avoiding this question like the plague.

Actually, Britain had the reserve currency at the time, however they no longer do. At the time the reserve currency changed to the dollar, the Brits were borrowing from us, and a study of their economy in the 70s is a good place to go to find out what happens when your particular fiat currency is no longer the reserve currency...

They had the global currency because they had the most GOLD. How do you think they became the international currency? They were the richest nation and biggest empire on earth at the time. Where did all that gold go to? I read somewhere that 98% of American gold reserves are foreign owned.

Holding Treasuries does not allow you to "control the economy" it is the tool that they use to "create" currency.

Give me the power of the money and it will not matter any more who is commanding(sits on the throne or makes the laws)."
- Mayer Amschel Rothschild

No, they wouldn't. More dollars=less value. this has all been explained before. It is called inflation. See the Weimar republic if you want to know what happens if they just "print more".

Since no one audits the Feds, how do people really know how much money is in circulation? They can just keep creating money and buying things and using those investments to pay off their own money creation. Its like me having endless credit. I can keep purchasing as long as my credit is bottomless.

Never mind Weimar republic! Canada, of which is a country rich in resources, in theory could rack up a 1000 trillion dollar deficit. Who cares if the money has less value. It will still have the same value within the country, and as long as we do not buy anything foreign, we're ok. We could build the world's largest military, best industry, ect....

No, it is 100% "invested" in debt. It holds no other form of investment. Before Clinton finally finished it off when they were trying to say there was a "surplus" it had actual money in accounts, it no longer does. It simply holds Treasury Bonds, which is a "promise to pay" from the Federal government.

If I am not mistaken, the people pay a portion of their Social Security, and those that are employed now also help pay the retirees(it works well if the workforce continues to multiply). The Gov I would imagine pays any difference. My understanding is that the Gov spent the money(real value) and replaced it with debt.(Nice scam). The workforce is being outsourced(reducing SS coffers). Bush wanted to start investing it into the stock market, so when it crashes, the gov is not held liable and the rich can once again steal the wealth of the people.(another scam). Capitalism is all about scamming.......

I still don't see the problem. Worst comes to worse? America claims default, and they start racking their credit up all over again..........After all. Its backed by nothing.

The fed res wont care because according to you, it has no money invested and doesn't lose anything(but it has made trillions), but the people that actually used real wealth to buy bonds? Well they are shit out of luck.

The only problem is the feds can no longer steal real wealth from Americans using fake money. Maybe that is why they dont want Greece to default and go back to their old currency.

 

[Rune]

You are literaly mentaly retarded.

 

[Damocles]

I'm not insisting fiat money is backed by something(Fiat money is paper money backed by nothing), I am insisting that US currency and debt must be backed by something, making it NOT a fiat currency. Try to keep up!

You are incorrect. It is fiat currency and has been since the early 70s.

You didn't answer the question! I understand debt is an IOU. More then likely promise to pay with GDP as collateral.

Again, the government does not own GDP, they cannot promise it in collateral. That's just stupid.

Though the FEDS according to you, buy American debt with fiat money, and then get interest on money backed by nothing. How did they pull off that racked? And if the Feds can make endless money, why the need for Asians buying bonds? Are they giving them a piece of the illusionary economy?

Again, the federal government takes a loan from the FED which creates the currency. You are absolutely ignorant of all of this. I've posted cartoons for you so you could understand, explained it, told you how it works and still you are utterly and completely (I say deliberately) ignorant on the topic. It's like talking to a child.

America the greatest nation on earth, built on IOUS? No real wealth? What kind of a great nation is that, and why cant Canada build a 100 trillion dollar deficit. You seem to be avoiding this question like the plague.

Yes. And Canada could build a 100 Trillion dollar deficit, however it would devalue the Loonie (as I've told you before) making it another Weimar republic.

They had the global currency because they had the most GOLD. How do you think they became the international currency? They were the richest nation and biggest empire on earth at the time. Where did all that gold go to? I read somewhere that 98% of American gold reserves are foreign owned.

No, they didn't have it because of that, they had the reserve currency because that is what banks traded in, it was built on their empire, not because they "had the most gold", that's nonsense.

Give me the power of the money and it will not matter any more who is commanding(sits on the throne or makes the laws)."
- Mayer Amschel Rothschild

Yes, and they did.

Since no one audits the Feds, how do people really know how much money is in circulation? They can just keep creating money and buying things and using those investments to pay off their own money creation. Its like me having endless credit. I can keep purchasing as long as my credit is bottomless.

It just recently went under an audit. And again, at some point the currency devalues through massive inflation, they can't continue to "just create" more currency or they will have a Weimar republic, or will (at the very least) lose reserve currency status and become incapable of just creating more currency out of thin air.

Never mind Weimar republic! Canada, of which is a country rich in resources, in theory could rack up a 1000 trillion dollar deficit. Who cares if the money has less value. It will still have the same value within the country, and as long as we do not buy anything foreign, we're ok. We could build the world's largest military, best industry, ect....

Again, they could but it would create another Weimar republic. You may wish to ignore history and repeat it, but they do not.

If I am not mistaken, the people pay a portion of their Social Security, and those that are employed now also help pay the retirees(it works well if the workforce continues to multiply). The Gov I would imagine pays any difference. My understanding is that the Gov spent the money(real value) and replaced it with debt.(Nice scam). The workforce is being outsourced(reducing SS coffers). Bush wanted to start investing it into the stock market, so when it crashes, the gov is not held liable and the rich can once again steal the wealth of the people.(another scam). Capitalism is all about scamming.......

No, the way SS was set up, the money going in paid the benefits of the program. This is no longer the case. Currently all of the money that goes into SS is taken into the General Funds and spent by the Federal Government to pay interest on the debt. Benefits are currently paid solely by taking on more debt. It is a vicious cycle and unsustainable, it is the reason that Al Gore spoke of "lockboxes" during his campaign.

I still don't see the problem. Worst comes to worse? America claims default, and they start racking their credit up all over again..........After all. Its backed by nothing.

If we do that we lose reserve currency status and will become incapable of simply printing more money to pay debt (international debt will be owed in the new reserve whatever that is, devaluing our own currency will not change what we owe it will just increase the numbers in the debt.) Being backed by nothing doesn't change the laws of economics, of which you are entirely and completely utterly ignorant of even the simplest of ideas that you need to be able to hold a partially intelligent conversation on this issue.

I'm not saying you are stupid, but you lack a basic education on this subject and it really shows in your posts. The idea that printing another fiat currency (the greenback thread) would solve the problems caused by fiat currency is flat the stupidest idea ever. It's like saying spreading mud on the floor will clean the floor of mud....

The fed res wont care because according to you, it has no money invested and doesn't lose anything(but it has made trillions), but the people that actually used real wealth to buy bonds? Well they are shit out of luck.

Again, this is one of the most ignorant statements ever. The FED works only because we have the reserve currency, they cannot devalue it too much (print too much and make it worthless) or they will lose that capability, and with it will take our economy down.

 

[Damocles]

Seriously, it is impossible to take you seriously. You should stick to some topics that you actually understand, when your first premise is flat wrong (like scientists claiming the Earth was the center of the Solar System) everything that flows from there is flawed.

Please take an economics course next year in your 9th Grade Class, it will help if we can begin with the most basic 2+2 kind of understanding, we can then hold a reasonable and intelligent conversation. You are seriously deprived of any knowledge in this arena.

 

[wiseones2cents]

Seriously, it is impossible to take you seriously. You should stick to some topics that you actually understand, when your first premise is flat wrong (like scientists claiming the Earth was the center of the Solar System) everything that flows from there is flawed.

Please take an economics course next year in your 9th Grade Class, it will help if we can begin with the most basic 2+2 kind of understanding, we can then hold a reasonable and intelligent conversation. You are seriously deprived of any knowledge in this arena.

In other words you are unable to reply with sufficient replies. Gotcha. Maybe it has to do with the whole Freemasons and Federal reserve banks that are in cahoots and this is a freemason run board(That means you).

I've seen this tactic used many times when people are unable to reply. They try to discredit, insult or talk down the person.

Sorry I dont buy it. If the global economy is run on make belief money(backed by nothing?) Then those that control the make belief money are able to buy the entire world's wealth using IOU's(money they dont have). And if the loaners default, the creditors can acquire actual wealth(real assets) that was created out of nothing for nothing. All they'd have to do is set up shop in every country. And force everyone into debt!

That is why eventually they(The fed res elites) would own the entire world. I'm sure many nations have already been forced into debt and are slaves to perpetual debt made of nothing(But at least partially backed by real wealth as a buffer). That is why capitalist debt MUST be backed by REAL WEALTH.

You still haven't explained where the vast amounts of the British Gold reserves went. Since they were using fiat money, backed by no wealth, there is no way the gold could have ran out.

Why don't you read up on how the European banks(bankrupted the Monarchy) and took over Britain. She is merely a head figure and doesn't own much. What is she worth? 650 million? The British Monarch used to own the world.

This fiat scam is great, because those who invented it had all the GOLD. Rather then give away their assets(They gave all their silver to the Asians way back), they decided to start issuing paper money. No mater how many times they went bust, they always had the real wealth(The gold) to start over again.....

That is why many major economies have gold reserves as a buffer(safety net) should their currency default. Smart hey?

All it is is fractional banking on a mass scale. Many many times exaggerating their true assets, since no one has the authority to audit them(see how much real wealth they possess).

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" - Sen. Barry Goldwater (Rep. AR)

If it is as you say and there is nothing backing that wealth? EVERY AMERICAN SHOULD RISE UP AND OVER THROW THE FED RES THAT WILL EVENTUALLY TAKE OVER AMERICA THE LAND THAT THE VETS FOUGHT TO PROTECT WITHOUT FIRING A SINGLE SHOT!

Actually I think they already have and are going global. That is not capitalism, that is thievery.

"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." - John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).

 

[Cancel 2016.2]

Maybe you guys can explain something to me. Inquiring mines want to know.lol

Americans spend trillions of dollars in interest to pay the national debt. To whom does the interest go to?

Lets try to keep this one civil.

It goes to whomever buys the US Treasury bonds/notes.

 

[Cancel 2016.2]

Our bonds are backed by the full faith and credit of the US government. The Government has at its disposal assets that it can use to repay the debt. Other nations and investors know that. Our ability to repay the debt is what backs them. The assets we have are: revenue generated from taxes, land, resources, buildings, gold etc... The goal is to repay the interest from current tax receipts so that we don't start liquidating assets.

 

[Cancel 2016.2]

In other words you are unable to reply with sufficient replies. Gotcha. Maybe it has to do with the whole Freemasons and Federal reserve banks that are in cahoots and this is a freemason run board(That means you).

I've seen this tactic used many times when people are unable to reply. They try to discredit, insult or talk down the person.

Sorry I dont buy it. If the global economy is run on make belief money(backed by nothing?) Then those that control the make belief money are able to buy the entire world's wealth using IOU's(money they dont have). And if the loaners default, the creditors can acquire actual wealth(real assets) that was created out of nothing for nothing. All they'd have to do is set up shop in every country. And force everyone into debt!

That is why eventually they(The fed res elites) would own the entire world. I'm sure many nations have already been forced into debt and are slaves to perpetual debt made of nothing(But at least partially backed by real wealth as a buffer). That is why capitalist debt MUST be backed by REAL WEALTH.

You still haven't explained where the vast amounts of the British Gold reserves went. Since they were using fiat money, backed by no wealth, there is no way the gold could have ran out.

Why don't you read up on how the European banks(bankrupted the Monarchy) and took over Britain. She is merely a head figure and doesn't own much. What is she worth? 650 million? The British Monarch used to own the world.

This fiat scam is great, because those who invented it had all the GOLD. Rather then give away their assets(They gave all their silver to the Asians way back), they decided to start issuing paper money. No mater how many times they went bust, they always had the real wealth(The gold) to start over again.....

That is why many major economies have gold reserves as a buffer(safety net) should their currency default. Smart hey?

All it is is fractional banking on a mass scale. Many many times exaggerating their true assets, since no one has the authority to audit them(see how much real wealth they possess).

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" - Sen. Barry Goldwater (Rep. AR)

If it is as you say and there is nothing backing that wealth? EVERY AMERICAN SHOULD RISE UP AND OVER THROW THE FED RES THAT WILL EVENTUALLY TAKE OVER AMERICA THE LAND THAT THE VETS FOUGHT TO PROTECT WITHOUT FIRING A SINGLE SHOT!

Actually I think they already have and are going global. That is not capitalism, that is thievery.

"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." - John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).

You do realize that the US has the largest gold reserves of any nation.... BY FAR?

Out of all sovereign gold reserves... the US holds about 74%.

 

[Damocles]

In other words you are unable to reply with sufficient replies. Gotcha. Maybe it has to do with the whole Freemasons and Federal reserve banks that are in cahoots and this is a freemason run board(That means you).

Had I not replied, informing you of the reality you may have a point. However, you continue to ignore what is said to promote idiocy and prove your self-identified value.

I've seen this tactic used many times when people are unable to reply. They try to discredit, insult or talk down the person.

Sorry I dont buy it. If the global economy is run on make belief money(backed by nothing?) Then those that control the make belief money are able to buy the entire world's wealth using IOU's(money they dont have). And if the loaners default, the creditors can acquire actual wealth(real assets) that was created out of nothing for nothing. All they'd have to do is set up shop in every country. And force everyone into debt!

Another post that clearly indicates you do not understand fiat currency or modern economics.

That is why eventually they(The fed res elites) would own the entire world. I'm sure many nations have already been forced into debt and are slaves to perpetual debt made of nothing(But at least partially backed by real wealth as a buffer). That is why capitalist debt MUST be backed by REAL WEALTH.

Again, the currency is not backed by anything other than a law saying it is currency. Legal Tender for all debts public and private. That's it.

You still haven't explained where the vast amounts of the British Gold reserves went. Since they were using fiat money, backed by no wealth, there is no way the gold could have ran out.

Actually they still use a partially backed currency. Unlike the US they didn't entirely go into total fiat currency. Which changes nothing. Partially backed currency can still be inflated and devalued giving them room to promote Keynesian economic principles of debt and control of inflation.

Why don't you read up on how the European banks(bankrupted the Monarchy) and took over Britain. She is merely a head figure and doesn't own much. What is she worth? 650 million? The British Monarch used to own the world.

This fiat scam is great, because those who invented it had all the GOLD. Rather then give away their assets(They gave all their silver to the Asians way back), they decided to start issuing paper money. No mater how many times they went bust, they always had the real wealth(The gold) to start over again.....

Had you watched the video I provided for you this would all have been explained.

That is why many major economies have gold reserves as a buffer(safety net) should their currency default. Smart hey?

Again, that is not why, please watch the video I provided in the "Greenback" thread, it will help if you actually had a basic understanding of the topic before you started spouting.

All it is is fractional banking on a mass scale. Many many times exaggerating their true assets, since no one has the authority to audit them(see how much real wealth they possess).

Again, we dropped fractional back in the 70s. It's like speaking to a rock. Geebus.

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" - Sen. Barry Goldwater (Rep. AR)

If it is as you say and there is nothing backing that wealth? EVERY AMERICAN SHOULD RISE UP AND OVER THROW THE FED RES THAT WILL EVENTUALLY TAKE OVER AMERICA THE LAND THAT THE VETS FOUGHT TO PROTECT WITHOUT FIRING A SINGLE SHOT!

Duh.

Actually I think they already have and are going global. That is not capitalism, that is thievery.

"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." - John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).

Again, please watch the video. Please. It will give you some tools whereby you can arm yourself. You come to this battle unarmed and incapable.

 

[Damocles]

You do realize that the US has the largest gold reserves of any nation.... BY FAR?

Out of all sovereign gold reserves... the US holds about 74%.

Too bad we don't use it to back our currency...

 

[Dixie - In Memoriam]

In other words you are unable to reply with sufficient replies.

LOL... This says it all! Yes, that's right moron, he is unable to reply with sufficient replies... there are just not enough replies in the world to convince a rock headed moron that he doesn't have a clue. Damo, SF, myself and others, can reply to you day and night, 24/7/365, continually, non-stop... and it still would never be sufficient replies. You will remain an ignorant and stupid little twit, who refuses to allow anything to penetrate his granite-like cranium. But.. at least you are aware of this.

 

[Rune]

LOL... This says it all! Yes, that's right moron, he is unable to reply with sufficient replies... there are just not enough replies in the world to convince a rock headed moron that he doesn't have a clue. Damo, SF, myself and others, can reply to you day and night, 24/7/365, continually, non-stop... and it still would never be sufficient replies. You will remain an ignorant and stupid little twit, who refuses to allow anything to penetrate his granite-like cranium. But.. at least you are aware of this.

What makes you think he is aware of it?
He thinks everybody else is wrong and he is the only one who is right.

 

[Centinel]

What makes you think he is aware of it?
He thinks everybody else is wrong and he is the only one who is right.

I'm sorry guys, I bailed. You all have much more time and patience than I do.

 

[FUCK THE POLICE]

Maybe you guys can explain something to me. Inquiring mines want to know.lol

Americans spend trillions of dollars in interest to pay the national debt. To whom does the interest go to?

Lets try to keep this one civil.

To whoever bought the bonds. Not that difficult.

 

[FUCK THE POLICE]

Too bad we don't use it to back our currency...

I think it'd be a waste to lock the gold away in order to back up a currency that the markets aren't really showing any doubt in. Plus, a mistake on the part of the government in setting the amount of gold that backs up the currency could result in disastrous losses in our economy. See Black Wednesday.

 

[FUCK THE POLICE]

Our bonds are backed by the full faith and credit of the US government. The Government has at its disposal assets that it can use to repay the debt. Other nations and investors know that. Our ability to repay the debt is what backs them. The assets we have are: revenue generated from taxes, land, resources, buildings, gold etc... The goal is to repay the interest from current tax receipts so that we don't start liquidating assets.

I think that if we get to a point where our debt is so disastrous we have to start liquidating assets to pay it, we'll likely just default and renig on the debt. That's one thing a sovereign nation always has a right to do, although it means we'll have to spend a great deal of time rebuilding trust with the market before we can borrow at reasonable rates again. Of course, this whole situation really shows me the absurdity of arguing that the US government is broke. Imagine if banks were tripping over themselves to fill your requests for loans with an interest rate of 3.66% which are secured by nothing more than your promise to pay them back.

 

[Damocles]

I'm sorry guys, I bailed. You all have much more time and patience than I do.

It's tough, that's true. But I feel that there is a chance that this kid can actually learn, if they just pay attention.

 

[Bonestorm]

I think that if we get to a point where our debt is so disastrous we have to start liquidating assets to pay it, we'll likely just default and renig on the debt. That's one thing a sovereign nation always has a right to do, although it means we'll have to spend a great deal of time rebuilding trust with the market before we can borrow at reasonable rates again. Of course, this whole situation really shows me the absurdity of arguing that the US government is broke. Imagine if banks were tripping over themselves to fill your requests for loans with an interest rate of 3.66% which are secured by nothing more than your promise to pay them back.

We also have the option of just printing more dollars.