by Dr. Paul Craig Roberts
PaulCraigRoberts.org
The entire the financial press has zero understanding of basic economics. The financial “journalists” just print press releases.
The US debt has never mattered, because the US dollar is the world reserve currency. That means US debt is the reserves of the world’s central banks. If US debt rises, so does the reserves of the world banking system. All central banks were delighted to accumulate more US Treasury debt as it meant the reserves of their banking system went up.
The Federal Reserve can always redeem US Treasury debt by creating money with which to buy it. The debt is always redeemable because it is denominated in dollars.