tag:blogger.com,1999:blog-11027528911364475.post4550688226154591355..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: The Treasury Rally that Keeps on TruckingJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11027528911364475.post-4234267088594123652012-01-17T23:06:37.890-08:002012-01-17T23:06:37.890-08:00The disaster you point to is one of the reasons it...The disaster you point to is one of the reasons it won't happen. China avoiding the dollar would mean they are no longer selling to Americans, their export partner (when you sell good to Americans, they pay in dollars). Why would they possibly stop doing this? <br /><br />For an in-depth analysis as to why the U.S. may be at risk, but for none of the reasons you point to, go to Michael Pettis: http://tinyurl.com/ch857k3Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-44021139933139108092012-01-17T15:39:51.338-08:002012-01-17T15:39:51.338-08:00I cannot imagine what will happen to the united st...I cannot imagine what will happen to the united states if china and all the countries and all investors the world over avoid the dollar. Interest rates would rise enormously and the federal reserve would be forced to buy bonds from the treasury to fund the government and pay interest on all of the governments bills notes and bonds. When the buyers for united states debt obligations disappears the whole system will come crashing down. This is the type of thing that peter shiff has been warning everyone about when the ability of the united states to pay its debts becomes clearly in doubt all the buyers for united states debt securities disappears overnight.Dennis The Menacehttp://www.manhattancalumet.comnoreply@blogger.com