[quote=OC Scam]But seriously what makes you think the Treasury will not default on those bonds at some point soon? Maybe you think the AMERO will save us?[/quote]
I’m not sure how someone who owns the printing press defaults on bonds denominated in dollars. The fed, can always add more dollars to their ledger and then spend them buying treasuries, which gives the treasury dept money to spend. I fail to see why or how they would default as long as they continued to do that. That’s the beauty of a fiat currency. Those who control the printing presses can make as much of it as they want.
If by default, you mean to imply that at some point in time the fed will not be able to get anyone to take the dollars they drop out of the helicopter, then I suppose you could call that a default. But I don’t see that happening anytime soon. China and lots of other foreigners are still buying up dollars to manipulate their currencies, and I don’t think that game ends anytime soon.
Or maybe you mean by default that at some point deflation will cease to be a concern, and inflation will come back, and then the fed will have to face the music. I could easily see that happening, but just not any time soon.
If by default, you mean the traditional definition, ie. the treasury simply refuses to pay back the bonds they have issued, I don’t see why they would do that. Care to explain what they would gain by doing that?
