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View Diary: “Thank God I had a buddy at Burger King who could help me out” (274 comments)

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  •  US Debt downgrade.....and they said it could never (0+ / 0-)

    happen........Prospects for the future?......According the piece addressed by this diary, ungood......According Boehner & Co.......fasten your seatbelts.

    •  we got downgraded and no-one with money cared (2+ / 0-)
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      ozsea1, Dr Swig Mcjigger

      The downgrade had no significant effect on Treasury yields - a proxy measure of demand for Treasuries where low is good - which have continued to hover a little above zero.  No-one thinks that the US government is a bad investment and they don't think it's in danger of going bad anytime soon.

      I'm not trying to downplay the long-term sustainability issues here, but I think there's some hysteria around this issue.  No-one - not China, not Japan, not Europe, and hopefully not our own government - is going to destroy the value of Treasury bills and trigger a fresh round of global economic crisis out of spite. China's position on the matter is not "You pay now!" and never has been; they want to see the long-term investment value of their Treasury holdings protected. They want progress on getting our debts under control, but they're willing to give us time so that our progress is sustainable; they don't want it vulnerable to politics and they don't want us crashing our own economy in the process.

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