Posted on 08/08/2011 5:30:11 PM PDT by Former Proud Canadian
Don’t forget the government had been running for months on money diverted from pension funds etc. I’m guessing they paid the overdue money into these funds after the debt ceiling was lifted.
But Alan Greenspan said...
Inflation would make it sooner.
I wonder if the Fed is dumping it’s huge holdings of T notes into this market...
He's not my president, FRiend. :)
Default on the US debt is not really an option for a variety of reasons. US corporations have billions in overseas assets. Think plant and machinery.
I don't believe a foreign country can nationalize a private corporation's assets in compensation for that private corporation's sovereign's debt default. By that I mean a foreign country that follows international law (countries like Cuba and Venezuela have nationalized foreign-owned corporations just because they wanted to and nobody was going to stop them....).
Do you actually believe that China is going to make a distinction between GM and the US government? Do you think they are going to follow some quaint notion of "international law" in the event of a default?
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