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<p>[QUOTE=&quot;InfleXion, post: 1470625, member: 29012&quot;]This is true, but it doesn&#039;t refute my point, which was that without this ability the debt would not be able to expand to its current levels. Yes, fractional reserve banking expands the debt regardless (however that is also impossible on a gold standard since no money could be created without more gold), but the debt sold by the US Treasury would not be able to be internally monetized without the Fed which owns 60% currently. This 60% was purchased with government printed money, without which would fall to the open market expanding the available supply by 150% (40% becomes 100%), which would impact the supply/demand of these bonds forcing either the value or the supply to drop by 150% to equalize the amount of money currently allocated for existing bonds, OR forcing leadership to be fiscally responsible enough to warrant a 150% higher price on the open market which would in and of itself require less debt to command that level of trust.[/QUOTE]</p><p><br /></p>

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