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Right. I think that overall that's correct - for all intents and purposes it's effectively impossible for the US Treasury to run out of dollars. But the way the
by phillmv 15y ago
Right. I think that overall that's correct - for all intents and purposes it's effectively impossible for the US Treasury to run out of dollars. But the way the incentives for agencies are set up makes me think we're begging to be lied to.
Mind you, despite all this you can have a serious news piece of "someone from Moody's" claiming that they might be forced to lower the US' rating http://www.bbc.co.uk/news/business-14142621 http://www.bbc.co.uk/news/business-14142621 - which frankly just sounds all kinds of ridiculous.
- mdda 15y agoWhy ridiculous? The treasury cannot, by law, issue more than a certain amount of debt. The politicians may change the law - but that's a vote that's yet to have been taken. Once upon a time, it would have been unthinkable for Japan to have had a lower credit rating than AAA. Also, the US owes money in currencies other than $, which the Treasury doesn't have the power to print.
- deleted 15y ago[deleted]