General Discussion
In reply to the discussion: Let's try this again: No, Social Security is NOT insolvent. [View all]TheWraith
(24,331 posts)"Remember the part about social security checks at risk of not going out, due to said debate?"
Yeah--because if the debt ceiling weren't raised, it would force a government shutdown. Nothing to do with the bonds being no good.
"Have you heard the news that we're about to hit that debt limit again?"
Yes--and due to the deal President Obama worked out last time, there is no real risk of Congress being able to obstruct it, since they now have to pass something to STOP the increase instead of to approve it.
"Treasury Bonds may have a history of being no risk, but that is...err...history."
Wrong, and nothing but a cheap attempt to pretend that the bonds are less than what they are: investments backed by the full faith and credit of the US Government.
"What happens if the Chinese quit buying new bonds at auction?"
The Chinese have less than no incentive to fuck with the US debt, since the US defaulting would be only slightly less damaging to the Chinese economy than a limited nuclear strike on all their major population centers.