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Old 19th Sep 2011, 00:40
  #942 (permalink)  
brodle
 
Join Date: Jun 2008
Location: canada
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Sunfish,

The USA government has most of its foreign debt in US dollars (reserve currency for now!) and can instruct its Reserve bank to print cash and buy its debt bonds (therefore keeping interest rates low). It is unlikely to default on its foreign debts.

I guess there is a slow default of sorts by way of a devalued USD due to excess printing.

Your eurobonds analysis is spot on.
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