Why would we default?

[redrobin]

Defaluting on our obligations instead of getting the size of government smaller seems like a silly plan if we don't extend the debt ceiling. Are our leaders too stupid to come up with a plan to reduce spending? If someone goes to a banker and tells them if they don't extend their line of credit, they're not going to make their payments they would get tossed out of the loan officers office. Why is it different when the government comes to us wanting more money? A loan officer might tell someone like that to sell their boat instead. I guess our government officials don't want to sell their yacht.

 

[Mike]

The Federal Reserve doesn't make money unless we are continually borrowing from them. The kicker is, the money we borrow from them is made from thin air.

It is nothing but an entry on a balance sheet.

Then the Fed turns around and sells a T-bill, bond, etc. to China and collects the money from that sale. They hold this money in their coffers to loan out to other banks, domestic & around the world.

Wouldn't you like to get paid interest twice for money that costs you nothing to obtain?

Our interest to the Fed for 2011 is $385,871,949,498.62

The Cartel known as the the Fed is insisting we borrow more. Plain & simple.

 

[katrina]

I think the federal reserve should be audited every three years..