I don't think they're holding the bag. They're holding the dough. Defaulting in the way you describe would be the ultimate capitalist sin.
^^^^ CB: I don't know if I am accurately paraphrasing Hudson's thesis. Are you familiar with _Super-Imperialism_ ?
Don't they hold "loan notes" ? The idea is they can't get all their money without breaking the system , pulling the building down on themselves, I think. I'll try to find a summary.
They are the ulitimate capitalists, so they can't sin against capitalism. What's good for "them", is good for capitalism
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IMO NF exaggerates the US budget problem.
^^^^ CB: You're a deficit spending, Keynesian type-a-guy anyway, no ?
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The trade deficit suggests a nasty "hard landing" recession in the future, but the wealthy can ride those things out.
mbs