Hmmmm, let’s see…Who will they sell the Treasuries to? They certainly won’t sell to anyone holding dollars, because Treasuries are paid in dollars, dollar-holders already have plenty of dollars…..How about England? Not a chance. Canada? Nope. Australia? Noooo. OK, France! Yes, France loves us SO much they would gladly buy our..Wait! Nope! France has surrendered and decided that holding more dollars in their central bank on top of the Greece disaster could be a bit risky…How about the Swiss??? You’re kidding of course. Germany? Germany doesn’t even want to help Greece, a fellow EU member – think they want our Treasuries? Treasuries have been selling at sucko interest rates, so the Chinese will have to take a hit in their dollar holdings to dump the bonds. At the scale they are talking, they might find very few credible buyers. The mistake they made, as did the Arabs in the post-WWII world, was to agree to be paid in little pieces of green paper. Come to think of it, so have we.
A brilliant assessment my friend....that unfortunately many FR will fail to understand!
Great analysis.. don’t you wish everybody was as smart as you? Seriously, the world would be great if everyone had a rational mind. nice job!