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Subject:  Re: The Working Class Date:  11/13/2012  7:55 PM
Author:  TheDope1 Number:  110921 of 176619

You don't need to ask, the answer is demonstrable. People the world over continue to line up to lend money to the USA. I know, the bond vigilantes are right around the corner, where they've been for decades, and they're going to punish us any day now by taking their money and buying gold with it or something. Any day now.

Wow, do you not get it.

The ONLY reason people buy our debt is because right now we're the only game in town with the combination of:

1. Stability
2. Big enough economy
3. Reasonable expectation for payoff in the future
4. Mature markets that function

Notice the operative phrase "Right now". China fails #4 and #1. Europe fails #1 and #4, although the ECB is moving rapidly to fill that gap.

So what happens when they kick out the PIIGS and start issuing stable Euro bonds, largely tied to Germany's economy?

Goodbye worldwide reserve currency status, that's what. You liberals need to wake up and understand that the world doesn't sit still while Obama threatens #2 above.
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