Reply #10: This is big news [View All]

[cavanaghjam]

and inevitable. China is a close second to Japan in treasury debt ownership. U.S. will have to raise interest rates faster than it wanted to in order to attract investment. Even that may not stem the emigration of foreign countries from the T-Bill window. This might even lead to an abandonment of the dollar as global currency if Japan and Europe begin to doubt the viability of America as a stable economic entity. No doubt the higher interest rates will be a drag on the economy and a cause of numerous personal bankruptcies for people living on plastic.