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

To: RetiredNow who wrote (316414)	12/19/2006 9:47:31 AM
From: Elroy	Read Replies (2) \| Respond to of 1574001

We have debt held by other countries. That debt is enforceable. In other words, we can't just say, "Hey we owe that debt to ourselves, let's erase it." So this isn't just a currency issue. It's a real debt with no appreciating asset acquired when the debt was issued. ?? US debt is backed by US dollars. Foreign (or domestic) holders are due $1,000 (+ interest) of currency for each $1,000 of debt they hold. In other words, US debt is back by our currency - that is the underlying asset. Your mortgage is backed by your house - you don't pay, the bank takes the house in exchange for your mortgage. If holders of US debt demand payment of the US$ that the US government owes them, they will get it, in US$.