The monetization of U.S. government debt, we’re watching and it’s bigger than yo

[mick silver]

http://blogs.forbes.com/michaelpollaro/2010/12/02/the-monetization-of-u-s-government-debt-were-watching/

[palani]

This could be an important factor if you believe it is YOUR debt. I believe though that the U.S. set a precedent in not paying the southern debt following the (un)civil war so can hardly expect lawful people to pay for THEIR insurgency.

[FunnyMoney]

This could be an important factor if you believe it is YOUR debt. I believe though that the U.S. set a precedent in not paying the southern debt following the (un)civil war so can hardly expect lawful people to pay for THEIR insurgency.


I would agree with this in principal. But in practice it's another story. It is very likely, that just like in Ireland, the workers will be made to foot the bill. The bail outs and the servicing of the debt goes to the very wealthy. The people of China do not hold the bonds, the leaders of China hold them. The elite always get paid.

Both parties (those who issue the debt and those who hold and buy it) understand that to keep the system going and to actually get rich and richer from it they must gradually work the payments in. The workers, over the next 10 and possibly even 20 years will foot all the bills. The standard of living for the average worker in the West has to come down and come down a lot. Eventually it will reach the level of today's average worker in the East at which point the decline will then slowly move toward the average worker in Africa. But it must remain slow enough to not cause the frog to jump from the hot water.