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<p>[QUOTE=&quot;InfleXion, post: 1469213, member: 29012&quot;]Without money printing over 60% of the debt would not have a buyer (the Fed). So it does impact their ability to go into debt, because that debt requires someone to service it. If they don&#039;t have buyers then they can&#039;t issue it, and they can&#039;t go into debt. Since they print money and use it to buy these treasury notes (QE by definition) there will never be a shortage of demand, but if there was a gold standard they would not be able to do this, and would instead have to have enough creditworthiness to incite buying by the free market. Creditworthiness being the key here. Debt issuance would only continue for as long as the market is confident it will be paid back. This is why countries like Spain and Italy have such high bond yields right now, and ours are artificially low, because they can&#039;t print their own currency. Not only does this create a bond/debt bubble in the US, but it also prevents the market from using bonds for their intended function which is risk identification based on interest rates. Ratings agencies should not even be necessary.[/QUOTE]</p><p><br /></p>

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