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To: Flavius

Under this new “regime”, defaulted debt is actually worth the same as cash. Because cash currency is the promise to pay via the Federal Reserve, but defaulted debt has been promised to be made whole by the Treasury. They are thus equivalent. Even more remarkable, bad debt is unquestionably worth more than performing debt, because defaulted debt is now backstopped by the Federal Government, and performing debt is only backed by the borrower! So defaulted debt is worth exactly the same as a T-bill or government bond.

Put that in your pipe & smoke it.


89 posted on 09/21/2008 11:11:34 AM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
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To: Attention Surplus Disorder

that actually makes sense
im just confused with that 145Trillion outstanding, now with US pumping out 12Trillion as GDP its really not that bad

however none of that 12T is going to debt repayment like any average deadbeat that was not allowed to go bankrupt would do

so again what is the next scam i really want to be ahead seems there are great ways to make cash vs actually working


91 posted on 09/21/2008 11:18:09 AM PDT by Flavius (war gives peace its security)
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