Does \'monetization of debt\' have an end point? (by smokey)

Does "monetization of debt" have an end point?	smokey	NEW 10/26/2007 8:42:57 PM
Borrowers like the federal government cannot write blank checks. Borrowers must submit a request for credit to a bank. Theforeign bagholders have not loaned us a penny. All the foreigners havedone is to recycle loans that have already been made by the importingcountries. We are the "importing countries." The good oleprofessional consumers of the USA have borrowed every penny that theforeigners are "loaning" the federal government. Every penny of these"loans" represents more than a penny of debt when compound interest isattached. It is the domestic banks resting in the refuge of theFederal Reserve Banking System who have written the blank checks to theUS consumers of imported goods. Therefore when the US consumer is maxed out the foreigners' recycled debt will stop. Whatmany folks do not understand is that in order for the government tomonetized debt enough to bring us back to the zeropoint (0.), where wecan start over creating new bubbles, they would have to borrowtens-of-trillions of dollars from an entity who doesn't care about thedestruction of the value of these loans (assets). According toex-treasury secretary O'Neil and comptroller of the currency Stockton,the government is at least 50 trillion dollars in debt. Add tothat $50 trillion, tens-of-trillions of dollars owed by the leveragedspeculators of the financial system and tens-of-trillions of dollarsowed by cash-strapped consumers and any ideas of monetization of debtstart to scatter into the surreal. One-hundred trillion dollars of debt would be a conservative estimate of our total debt owed. Wedo not have a national bank that enables the government to distributemoney at will like Weimar Germany or Zimbabwe. Our government mustrequest credit from another source by auctioning bonds of the USTreasury. Can anyone guess what the interest rate would be onone-hundred trillion dollars of debt borrowed by an entity with littleincome and no history of debt payoffs? Smokey can't. This is why an unregulated fiat money system based on compound interest is doomed to failure. And that is why "infinite fiat" is a fantasy. "But, smokey... won't the Federal Reserve BANKING system monetize any requests of the federal government in order to at least bring us back to the '0.' ???" "No."