At some point, China and other international investors will just stop lending to the US. At that point, there will need to be a 40+% cut in spending, or a nearly doubling of the money supply in order to service the debt. At this point, about 40% of every dollar the government spends is borrowed. That's frightening.
Mark
2 posted on 12/31/2011 9:30:32 PM PST by MarkL
(Do I really look like a guy with a plan?)
Mark, China and the other international investors have stopped lending. I’ve read that the Fed is the only major buyer at Treasury auctions lately. Now when the Fed stops lending ......