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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (490955)	11/11/2003 4:24:59 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769670

Re: "So what would happen?" >>> Default in all but name. (They will NEVER repudiate the debt, or refuse to pay.) >>> Run the printing presses as fast as they can, and pay bond-holders back with scraps of toilet paper... but that can't 'solve' the federal funding problem. >>> Rates on T-bonds have to rise high enough to attract buyers. At some point enough potential buyers are attracted by the perceived risk/reward ratio. (Like in '81, when you could buy a 30 year T-bond yielding over 16%. Buyers gambled that eventually something would be done to lower the budget funding gap.) >>> Exactly where that sweet spot in yields will be --- considering the unpresidented projected budget imbalance going out to the visible horizon --- is unknown.