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

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To: Archie Meeties who wrote (90219)1/7/2008 1:10:49 PM
From: GST  Read Replies (1) of 110194
 
If we financed our own government debt from our own savings it would have little if any impact on the dollar unless it is a sign that the government would default on its debts to its own people by promoting an inflationary environment. The willingness of people outside the US to fund our tendency to live way beyond our means is a far more biting indictment of our financial position and far riskier in terms of our long term well being and the value of the dollar. Foreigners are far more inclined at some point to simply say "enough, we won't lend you the money to pay your bills this year".
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