The government has it’s hands completely tied.
The Fed (quasi-NGO, I know) *should* be raising interest rates right now, but CAN’T. If it does, the interest payments on the debt skyrocket and our deficit becomes completely unmanageable in a VERY short period of time. But there is very low foreign interest in our debt. So the Fed buys it (via a shell game, since it can’t do it directly) with printed money. We monetize but can’t increase interest rates.
We’re STUCK. Out of options. There is only one way this ultimately gets resolved, historically. War. Because someone is going to be left holding the bag, and they aren’t going to be happy.
Murdoch is right.
Iran, in October of 2012.
Last year over 60% of federal debt was “bought” by the fed, very very bad news for our dollar. If OPEC ever stops accepting dollars for oil we crash and I mean crash big time, 5 minutes later.