TanishaAdjokatcher

Breaking the chains of ourself imposed limitations

No One Bids on Our Bonds August 21, 2010

Filed under: World News — Tanisha Ajokatcher @ 5:47 am
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What “it will stop” means is that the buyers of our federal bonds in the U.S. and around the world will eventually say, “No, thanks. Your U.S. national debt is so high in relation to your income that we no longer trust you to pay us back and keep the purchasing power of the dollar steady. We think you are either going to default or inflate the dollar or both.” When that happens, the U.S. government must stop paying all its bills or pay them by “printing” money. “Printing” money causes inflation. “Printing” lots of money causes hyperinflation.

 

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