And there it is. The largest holders of Treasuries are banks that are members of the federal reserve system. Surrendering their treasuries for less than par, with an agreement to amortize the write down against their capital over the next (??? 10? 30? 50?) years would probably sound a lot better than “Hey guys, we’re bankrupt, so if you want some electrons back for the electrons you sent us a few years ago, raise an army and come take them.”
The hogs that have been slurping at the taxpayer filled trough since the 1930’s can go on a dammed diet for a decade or two, IMO.
These same banks and the Feds are now pushing negative interest rates.
We already have had 7 years where almost no interest is paid on deposits.
We have all been stolen from.
Quite frankly, negative interest rates are the last firewall before a collapse.
They are all desperate for the merry-go-round to keep spinning until 1/20/17.