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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Paxb2u who wrote (32946)	12/4/2010 1:26:47 PM
From: ggersh	Read Replies (1) \| Respond to of 71456

Slavery is a start, we don't have enough of anything else, do we?

To: Paxb2u who wrote (32946)	12/4/2010 5:08:32 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

Yes, and they will sell the T-bonds at some point. US Federal reserve can technically buy all these T-bonds with printed money if their targeted rates must stay low. The Fed is by far the largest holder of US Treasuries. It's roughly the same story as with Chinese Central Bank and their currency, Yuan. Sometimes it is difficult to keep a currency UP, but no central bank ever had difficulties devaluing it. China has a surplus, but has no difficulty whatsoever keeping the Yuan down if it wants to. The dynamics of a currency crisis is similar to the default of, say, California. The government bonds normally will have to be denominated in foreign currency, one that can't be printed, for that to happen.