Quote Originally Posted by Bigjon View Post
You keep talking about this collapse of credit, but I have not heard any reason for it to collapse. The cop in charge is the bankers and they don't seem to care much about standards in accounting. The Fed has an unlimited checkbook and buys the bankers instruments at the marked up value they put on them.

What will force the Fed to sell on the market?
What the Fed does or doesn't do, is irrelevant.

All it will take is for people/businesses/nations to stop accepting U.S. credit (a promise to pay) and demand cash payment.

Banks don't have the cash (none of them do) default, credit as currency ceases to exist as such and transforms into what it always was, bank debt.