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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: loantech who wrote (36293)7/19/2005 11:29:04 AM
From: Umunhum  Read Replies (2) of 110194
 
I am way out of my depth here but doesn't the US have unlimited ability to print money or produce it digitally?

Yes and No. Theoretically the US can print an unlimited quantity of money and thus pay off our entire national debt. However if we ever did that, the dollar would cease to exist as money because no one would take it in exchange for goods. When does this tipping point occur? That is the million dollar question.

I believe that foreign interest in the dollar is going to begin to wane and higher interest rates are going to be required to keep the money flowing into our treasuries. Higher commodity prices are going to have a starring role in the decline of the dollar.
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