DBTrek wrote: Thu Sep 06, 2018 12:02 pm
What’s the insolvency number? It’s not 20 Trillion dollars.
And who is coming past our stockpile of world-destroying nukes to collect?
Riddle me that.
Nobody needs to "collect", they simply need to stop lending us money, and accepting dollars. Which is precisely what's happening.
The 10-year yield recently went above 3%, so we started issuing 1-3 month bonds. That's like pouring rocket fuel on the national debt.
The Chinese launched the Petroyuan, and Iran has started selling their oil in Yen rather than Dollars. Russia followed, and others are starting to. It's the beginning of the end for "reserve status" - which simply means that our currency is the most trusted to hold its value.
Meanwhile, we just created $20 T in play money when our banks failed.
Once bond sales fail, where is the money coming from? What's a dollar worth?