TakeAStepBack
Gold Member
- Mar 29, 2011
- 13,935
- 1,742
Which is why the downgrades will continue until our international credit is foiled and we're forced to either make massive cuts to spending to pay down the debt (highly unlikely that congress will get this one together in time) OR we can be forced into aliquidity trap and set the stage for hyperinflation (a much more likely scenario).
The federal govt. is already borrowing .42 cents to every dollar it spends. Right now, China has already backed off buying our monetized debt. Japan and the UK (the two most indebted countries on the planet) are buying these bonds. How long can the fiat money scheme keep going??
Only time will tell. But it will not sustain. There will be a breaking point.
The federal govt. is already borrowing .42 cents to every dollar it spends. Right now, China has already backed off buying our monetized debt. Japan and the UK (the two most indebted countries on the planet) are buying these bonds. How long can the fiat money scheme keep going??
Only time will tell. But it will not sustain. There will be a breaking point.