Letter from former Fed official to America: "I'm sorry"

[sturg33]

are we going to stop paying our interest on our debt for some reason?

How can we pay interest on something that was printed out of thin air?

If the Fed prints $1 trillion dollars, we ow them interest on that. But in order to pay the interest, we have to borrow or print more. And if we borrow or print more, we owe interest on that

 

[Tapate50]

Funny isn't it? We hand people pieces of paper (actually, now we hand them nothing - just numbers in a computer), and they give us something of real tangible value.

But what happens when China and Russia and Iran stop using the petro dollar? What happens when our printing presses and national debt bring our credit rating so low that no country is willing to lend to us?

I find it insane that we have countries lending us anything.