[quote=Nor-LA-SD-GUY2]China, Japan etc… decide to sell all us treasuries at once in an act of whatever,
Let’s see.
Well seeing as the fed seems to have the ability to purchase an UNLIMITED amount of U.S. treasuries ,
I would think the fed will wait to buy the treasuries back at some extreme discount , then proceed to buy as many treasuries as necessary to bring the interest rate back down to a reasonable level. The very next day,
Then Ben will come on TV and do an end-zone dance.
Just joking (well about the end zone thing anyway).[/quote]
I like to think in much more simple terms.
1. China (because I don’t Japan would do it) dumps U.S. treasuries.
2. U.S. drops a few nuclear bombs….
3. Everyone is dead and flattened.
Whether we have fiat currency or not is besides the point.
Having the largest military arsenal makes negotiating and writing off debt much easier..
All you folks against military spending don’t know that it’s actually much cheaper to maintain a large military to force the rest of the world to eat our debt for which we have no intention of ever repaying instead of actually trying to pay off what we already owe…..
