wednesday trading, page-55

Asimov, I think Hedgy's point is that weekly supply of 20-30 billion can't keep coming without consequences.

I agree and I dont think anyone knows how the yanks and europe are going to pay off their debt since they appear to be struggling with the interest payments.

It's like saying, I can't pay my credit card so I will get another one with a bigger limit and use that to pay of the original one. That way I can keep spending. Alarm bells should be ringing.

Of course the Yanks can use inflation to reduce the absolute value (not dollar value) of their debt but that's why the Chinese are jumping up and down. The are effectively getting paid back in deflated value currency. Maybe they shouldn't have bought so much of the US debt? If the yanks default I guess the Chinese can start asking for assets. Wouldn't that be a mess....