1. That's not going to happen. The Fed will cover the Treasury just as it did the banks in QE2 - $16T
Edited on Fri Jul-29-11 10:38 AM by leveymg
The Fed isn't under the control of either the Exec or the Leg branch. They can cover the debt by their own authority. It's an extra-Constitutional body, a fact that was previously treated by some as threatening but which now becomes useful.
This sort of political/economic "crisis" is why the Fed was created.
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