Who owns US debt

[A HERETIC I AM]

7. That was the perception carefully crafted over decades, especially since WWII

But it is not engraved in stone that it should remain thus forever.

Trumpy is and has been doing massive damage to that perception and there is nothing physically keeping anyone from sustaining the US Dollar as the worlds reserve currency. Never ending deficits and a national debt load that will soon become unsustainable will hurt the value of the dollar and anyone holding dollar reserves will be hurt along with it.

It might not happen overnight, but there are certainly moves by the various economic powerhouses around the world, the EU and China chief among them, to reduce the stranglehold the US$ has held over international commerce in the past.

We have our own currency so the government would just buy it. They do this daily.

As I said previously, neither the Treasury nor the Federal Reserve is under any obligation whatsoever to purchase our own debt paper. They may in order to stabilize markets, but that just adds to the negative side of the balance sheet, and sooner or later, international markets are going to call that bluff.

There will come a point where we will owe so much to ourselves that the interest alone eats up too much of the annual tax revenue to be sustainable.

And sure, the debt paper is denominated in US Dollars and we own the printing presses, so theoretically we would never have to declare insolvency and could print our way out of debt.

Take a wild guess what the consequences of that would be!