[quote=sdduuuude]I think it is a difference of opinion (i.e. guess) of what the gov will do if faced with bigger debt payments than they can handle.

The question is – will they print and pay or will they not print and not pay ?

You suspect they’ll just default and save the dollar.

I think they’ll print and pay.

It’s a good discussion, though.[/quote]

It would be kind of silly for the government to have taken all of the Fannie/Freddie debt ($5 trillion) on its books only to default on that debt a year later. After all, there was a notice on every Fannie/Freddie bond in huge letters that it wasn’t backed by the government.

Of course, our government has done a lot of silly things, so guaranteeing a bunch of debt they didn’t have to guarantee only to default on that same debt a year later wouldn’t be out of the realm of possibility.