Wes wrote:
"John R. Carroll" wrote:

Wes wrote:
"Stormin Mormon" wrote:

At which point, our creditors would be left with worthless
promises. However, what are the odds that the US government
(or any employee thereof) would ever break a promise?

I don't see us ever defaulting.

Double digit inflation isn't much different than default if you are
holding long term debt issued at low rates - like today's.
It's a great way for us to wipe out our debt with cheapened dollars,
however, and that is why it's important for the Fed and the rest of
our government to be convincing in their arguments that they are
serious about fighting inflation when the time is right and that
they know how to do so and will.

I sure don't want to go back to the Nixon, Ford, and Carter economy.
Remember WIN, Whip Inflation Now?

What I remember was being at 1% over prime and paying 21% interest on a 90
day revolving line of credit in 1981/82.

--
John R. Carroll