So - which makes a bigger impact - The Chinese, or Moody’s?
Who else, other than China even has the $ to buy our junk bonds? From recent reports - Europe is about to be totally bankrupt (Hey Europe - how’s that Muzzy-loving, one-currency, European Union join’ for you?).
Who does that leave? India? Russia? Venezuela? Brazil? This may sound naive - but who out there is willing to write a check to the USA for $2 Trillion? For that matter - who has that kind of solvent resources to even think about it? The Chinese?
It aint gonna be Moodys
“So - which makes a bigger impact - The Chinese, or Moody’s?”
The bond Vigilantes. They’ll buy our bonds but only at a higher interest rate.
” This may sound naive - but who out there is willing to write a check to the USA for $2 Trillion?”
That’s not naive at all. Some very sharp analysts have already been warning that the amount of money that the US will need to borrow is going to exceed the world’s available savings.