Who Will Buy Them?

I won't go into long detail again about how the U.S. Government gets money in it's checkbook except to say it is done by the U.S. Treasury selling T-bills and T-bonds at auction.

Over the past 20 years it has been very easy to sell them because there seemed to be an unlimited supply of foreign investors and foreign governments who wanted to buy them.

As we have been saying all along.....that process could come to a screeching halt when no one shows up to buy the T-bonds.

Then what happens when the U.S. government is forced to live within it's means because no one will loan them any more cash?

Check out some of these statements from a Chinese paper;

In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

He then addressed where demand for that debt would come from."The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

Read it here; http://www.shanghaidaily.com/article/print.asp?id=423054

Remember that the U.S. government will NEVER be truly out of dollars.....because they can always print them in an unlimited supply....and the general public has NO WAY of finding out how many $zeroes they have magically created in their checkbook....until we wake up one day to find that our $1200 Social Security check won't buy us a weeks worth of groceries.

What kind of chaos might ensue if the $1200 welfare checks being sent to millions of inner city recipients also fails to buy a weeks worth of groceries?

Sorry folks....but IF that day comes and you and I are still here to see it.....it will be chaos that could quickly turn into anarchy.