> Where will the money to redeem the bonds come from when we
> are running huge deficits?
The debt is already authorized (not part of the debt ceiling brinksmanship), so
they just sell more T-bills as needed. Worst case,
they might have to start paying a bit more interest to sell more T-bills, but
that hasn't happened yet (and isn't likely to).
And it's not like they have to come up with the whole $2 trillion at once.
"Running huge deficits" is a different topic, I'm not going to touch that one.
Except to point out that, if the rest of the world
really thought our economy was so bad, they wouldn't be lining up to buy
T-bills at practically no interest. The US is still the
safest investment in the world!
Randall
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