[MNJohnnie]

So it is using bad paper to buy up bad paper in order to keep the economic smoke and mirror game going.

[hinckley buzzard]

That about sums it up. We screwed.

[Pessimist]

Yup. This is how they monetize the debt.

This is actually the “printing press” you hear spoken of.

[EBH]

Oh somewhere way, way back I blogged about this very scenario. History is repeating itself.

We're so far in debt that the only way out, is to crash the debt bubble itself.

Weimar Republic. How does this look now?

Fraudulent ‘Credit Crisis’ Paves Way for Economic Disaster FamilySecurityMatters ^ | 12/16/08 | Cliff Kincaid

Charley Reese Sees a "Weimar Republic" in Our Future

[andy58-in-nh]

So it is using bad paper to buy up bad paper in order to keep the economic smoke and mirror game going.

That's the bad news. The "good news" (as it were) is that it won't last very long. The game is almost up. Debt interest finance is not additive - it is logarithmic. Once the interest curve spikes upwards (as ours has), it steepens rapidly, until even interest payments become impossible (as the cost of finance precludes any hope of investment).

Politicians lie. Math does not.