RE: US National Debt Ceiling.
April 14, 2011 at 9:14 am
(This post was last modified: April 14, 2011 at 9:16 am by theVOID.)
(April 14, 2011 at 8:16 am)ib.me.ub Wrote: There has been a bit of news down here latley about the US National Debt Ceiling, and its pending arrival next month. The current debt ceiling is 14.3 trillion dollars.
So apparently the US Congress has two options;
1. Default.
2. Raise the National Debt Ceiling.
Obviously, they will raise the ceiling, as option 1. may not fare well for the US.
My question is, how high can the debt ceiling possibly go before the debt collectors decide to cash in?
They have option 3:
Government doesn't borrow and instead creates bonds (IOUs) that the fed prints a ton of money to buy up.
(April 14, 2011 at 8:24 am)reverendjeremiah Wrote: They can raise the debt ceiling as high as they want, and the debt collectors will work with them..what are they gonna do? Go to war with us? Invade America?
LMFAO
They can raise it as high as they want, but is anyone going to loan them money? Japan is for all intents and purposes out, China buys about 20% of the government bonds it previously has and doesn't loan them anywhere near as much of the dollars they buy, the Fed is the largest purchaser of government debt - Yeah, your government is loaning it's self money!
Your creditors are better off cutting the strings, the less money they loan them the less they will inevitably loose, they've already got next to no chance of recovering their loans, do you think China is going to loan you another trillion dollars when it's probably not going tom get back a fraction of the 1.4 trillion you already owe?
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