CicerosGhost Wrote:
Jan 18, 2013 10:57 AM
If the Fed is printing money to purchase ALL debt instruments issued by the Treasury Department (with congresses consent), then there is NO pressure resulting in higher interest rates.... If the debt was downgraded to CCC (junk), then the interest rates would still remain a essentially zero as at those rates the Fed would still be buying all of the debt instruments.... Of course this can only last for so long (see japan).... Eventually people, enterprises, and other countries will cease to accept the US dollar as a exchange currency.... Then... It's all over....