That chart is excellent. I think also that our near future will depend on monetization–not just raising the debt ceiling. What I mean is that even if there is no debt deal the Federal Reserve will continue QE — by monetizing the current debt (expiring treasuries) and also the Social Security Trust Fund, which is the largest holder of US treasuries. Thus, Obama tried to make all retired Americans panic, when Bernanke can just simply make money out of nothing and buy all 2.7 trillion that the US owes to the Social Security Trust fund.
That chart is excellent. I think also that our near future will depend on monetization–not just raising the debt ceiling. What I mean is that even if there is no debt deal the Federal Reserve will continue QE — by monetizing the current debt (expiring treasuries) and also the Social Security Trust Fund, which is the largest holder of US treasuries. Thus, Obama tried to make all retired Americans panic, when Bernanke can just simply make money out of nothing and buy all 2.7 trillion that the US owes to the Social Security Trust fund.
See: http://www.businessinsider.com/who-owns-us-debt-2011-7#social-security-trust-fund-17