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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (252106)	9/20/2005 10:15:14 AM
From: combjelly	Read Replies (2) \| Respond to of 1572158

"If the total debt, however, approaches a large chunk of the world total GNP, things start getting more complicated" It doesn't have to get to that point before it becomes a problem. If you have X dollars of bonds to sell to cover the deficit, but there is only a market for X-Y dollars of bonds, what happens? Even before the dollar started to drop, other countries announced that they wanted to decrease the amount of US bonds they were buying. Given that we pay off the bonds in dollars, and the dollar has been dropping vs. most currencies, it can only get harder to sell the bonds. Simple economics.