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To: justshutupandtakeit
Treasury bonds pay interest in dollars. It would be the lender who has the problem of convertibility not the US.

Not if the new debt that the government generates in the future can't be sold in Treasury Bonds for that very reason. Hence, this reveals the long-term Achilles heel of the heedles borrowing and spending strategy.

Total non-problem.

We'll see, won't we?

217 posted on 08/10/2006 9:26:26 AM PDT by Paul Ross (We cannot be for lawful ordinances and for an alien conspiracy at one and the same moment.-Cicero)
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To: Paul Ross

You clearly have no idea of how the bond market works. Treasury bonds are sold FOR dollars and redeemed IN dollars and the premiums are paid IN dollars. US government debt has been the safest in the world from the moment Hamilton reorganized it after the Constitution became operative.

It did not default or miss a payment during the Civil War, WWI, or WWII. Nothing as drastic as those times is on the horizon.

Actually we have already seen. However, those who believe that the Treasury has to worry about convertibility of its payments in foreign currency may never see.


227 posted on 08/10/2006 10:14:56 AM PDT by justshutupandtakeit (If you believe ANYTHING in the Treason Media you are a fool.)
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