Is this what make Bush administration wobbly these days?
I wouldn't think so. From what it appears to me, the Federal Reserve has already started monetizing the debt --- I was surprised to see that they are carrying something over $700 billion in U.S. government debt themselves.
Frankly, if the U.S. does that, I don't see why we don't just let the Treasury print U.S. dollars than borrow Federal Reserve notes.
The idea of our government borrowing dollars rather than just creating them was to induce some fiscal discipline, but since it appears that the central banks have decided not to enforce that discipline. So why bother to borrow dollars at 5% interest rather than just have the Treasury issue them for free?
Of course, we would want to raise the current issue limit from $300 million to something more reasonable.