Replies to post #173217 on Fannie Mae-No Politics (FNMA)

[Always wondering]

Extremely interesting read Crawford. Really shows the bigger picture how things intertwine and relate to each other whether we like it or not. Great things to come my friend :-)

[justradin]

Couldn't be further from the truth. It is illegal to not pay the bills first. The media won't report it as they like to support their man. But the US will not default. It will have to make cuts that the takers will find painful, and so that is being pushed off and pushed off. The interest is nothing compared to the billions taken in each month.

This line of reasoning is way off.

If U.S. Congress fails to lift the ceiling to allow the government to borrow more by Thursday, Washington may not have enough money to pay its bills, potentially leading to a default. That could sink the value of Treasuries — wiping out a big chunk of Chinese wealth in the process.

[955]

...and don't think for a minute that is not their motive. This is a very effective way of suppressing China's military buildup in a peaceful manner. However, all wars begin over economic differences. Good post!

If U.S. Congress fails to lift the ceiling to allow the government to borrow more by Thursday, Washington may not have enough money to pay its bills, potentially leading to a default. That could sink the value of Treasuries — wiping out a big chunk of Chinese wealth in the process.