> And it, too, has a last-ditch deterrent: selling its $1.1trn stock of American treasury bills, equivalent to 4% of the total outstanding. America’s highly liq

> And it, too, has a last-ditch deterrent: selling its $1.1trn stock of American treasury bills, equivalent to 4% of the total outstanding. America’s highly liquid bond markets may prove capable of absorbing the shock. The Fed would be forced to buy those bonds to maintain its interest rate targets. And since the Fed by law must remit its profits to the Treasury, the end result would be the net interest rate on that debt would drop from whatever it is now to zero. Hardly what I'd call a crushing blow. Imagine trying to threaten your banker by telling him if he's not careful you're going to move your money from your savings to your checking account.