We could just invite any foreigner with, say, $10M in cash to emigrate. Get enough Chinese to emigrate and it solves the problem. Lots of entrepreneurs and engineers we could use.
Seriously, markets work these things out. So if the Chinese don’t buy more bonds then the Fed govt. will have to offer a higher interest rate. At some point the interest on debt which is a line item in the federal budget becomes so high that they cannot borrow more.
In the end, the world free market for debt will DISCIPLINE Obama and Co. They just cannot spend as much as they want to. In fact, with tax revenue plummetting, I think they will have to CUT spending whether they like it or not. As for the Federal Reserve, it is private and may NOT do Obama’s bidding if the Fed thinks that hyperinflation is on the way.
We could just invite any foreigner with, say, $10M in cash to emigrate. Get enough Chinese to emigrate and it solves the problem. Lots of entrepreneurs and engineers we could use.
I think this is a terrific idea. When Hong Kong was taken over by ChiComs Canada offered asylem and emigration for Hong Kong citizens with a million dollars and a plan. Vancouver is doing pretty well. Most countries like New zealand, and Switzerland require large cash reserves for immigrants.