We know for a fact that we can get downgraded now and surely will again… We also know that we are adding $250 million to the debt every hour, not reversing it, and inflation is soon going to crush us. What else??? We also know that forces throughout the world want to displace the dollar as the universal reserve currency. The interest on our debt is already a major budgetary burden.
There is nothing we can do about it anymore, except to pump our own oil–and that is not going to happen with the climate alarmists and militant environmental lobby. We don’t manufacture anything here to sell to the world anymore, and shortly, we will not be able to afford goods from China anymore. When demand for $s evaporates, we are finished. We will fall into chaos, government seizure of banks, and zero leverage to pay our debt. Obama is talking about the “MyRA” investment vehicle? Why? Yeah, because no one else around the world wants our bonds. Hey, let’s see if we can get our own people to trust us!!!!! It is a debacle looming.
So, printing more money will no longer work when we have to buy things in €, £, ¥. When the greenback demand ceases, we will cease to EVER get back to where we were as fiat currency to the world. We will actually have to export stuff. Guess what????? It’s oil. That is ALL we’ve got. And a few cool Ford trucks.
Flight to quality is finding refuge offshore and in physical, intrinsically valued assets. Good luck.