It was a can kick that will take 50 years to unwind. However if somebody didn't do something it is possible that we might have had wide spread chaos....not really sure
We were better off doing what we did.
It's not gone btw only rewritten as a more long-term debt.
Truth is we did collapse...we just don't realize it yet.
You didn't think that the rest of the world was going to take this sitting down did you?
Jo
Well, I dont know. It seems that right now, with the PetroDollar staying strong, we can keep kicking the can down the road and paying only what is due at any given time, kind of like a personal mortgage. The MBSes and so forth that the Federal Reserve bought is actually bringing in more money to the Federal Reserve and they are making a killing off these things as the Federalis have no mark-to-market rule and can do pretty much whatever they want (which is a big reason that they dont want to ever have a simultaneous universal audit of all their system banks, as they can shuffle money between them to meet individual audits, lol).
So the federalis are making money off the worlds dependency on the PetroDollar in yet one more way and they are doing it to pay of our debt this time, lol.
The strength of our outsourcing our currency from the US Treasury to the Federali Reserve is that they have a stake in keeping its value up and rolling. That is heir primary product; US Dollars and they make a killing on it.
I would much rather trust professional sharks like the Federalis with maintaining the value of their debt notes than US politicians; dont you?
To the Federalis it is their money and their livelihood they are managing, tweaking and ensnarling the globe with, for the politicians it is just tax payer money which in their minds falls from Heaven like Mose's mana in the Sinai desert.
I'll go with the Federalis, thank you.