obama to ask for debt limit hike says treasury, page-9

enoomai... sorry,
your comment...
US Govt = sole issuer of US currency = not financially constrained = can never got broke (unless it chooses to do so).


I might be wrong, but the US govt isnt the issuer of the dolar, thats the FEd and they are a private entity. they will lend to the govt (at interest) so yes, the US can stay solvent as long as they like, but its how the dillution affects its worth and its wellbeing internationally as the worlds trading moves to agreements like teh one signed between teh Chinese and the Japanese a few days back.
from my point of view, there will come a point where they continue to issue all they want and the worth of it will lose its buying power, it wont be as bad as Zimbabwe, but the US is already bankrupt and debt exceeds income form revenue. so now they are going backwards.
and its all part of the convuluted plan to reduce debt by devaluing their currency.