Quote:
Originally Posted by Michael The Disciple
Dont we have to defend Saudi Arabia? What was the deal about the "petrodollar" all about? Was that just for OUR BENEFIT? We owe them NOTHING?
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We do now, unless we want them to dump their bond holdings and jolt both the banks and the markets.
A couple of point increase in interest rates would just about guarantee a default. Right now interest is 7% of the budget and at these rates that number could quickly eat into revenue. Once we borrow to pay interest, we're done. Bad times.
With that said we owe just about everyone else too. We did not beat the USSR militarily, we beat them economically. Which in my view was worse. Now we are very vulnerable to the same thing. So speaking of owing or not owing really isn't our luxury anymore.