BTW, as to what I mean by “our creditors” I want you to think of what would happen to the Federal budget if they decided to change their minds at the next bond auction.
Do you even know who are ***today*** “our creditors”? They don’t exist much any more outside member investment banks of the Federal Reserve.
The federal government government is propped up indirectly by the Feds channeling digitally created funds though bond markets administered by their member banks and bought from the US Government at auction.
The news of yesteryear crowing over the ‘Chinese’ as America’s biggest creditors is just that, yesteryear. Chinese government has largely divested themselves of their US Bond holdings. Today it is all on the Federal Reserve.
And you will notice that the Feds can’t stop what they are doing even though they know they must and even though they whisper they will, but they won’t because it will collapse in catastrophe.
But there is good news.
The federal debt attributed to the Federal Reserve (which is now by far the largest portion) can be cancelled, easily ‘deleted’ in a controlled process that is basically a controlled bankruptcy of the United States. And as long as it’s not characterized as a controlled bankruptcy, the corporate bond markets will continuing to thrive as long as the economy is growing fast enough to offset the tapered effect of cutting off the artificial Fed Reserve support. But this economic growth can only happen if the right tax reform and the right trade policies are put into action.