Now such T-bonds were great stuff in the last Great Depression.
But 70 years ago, the US was the largest exporter of crude oil. It had the edge on a inovative and productive market leading the world. All this was supplied by ample quantities of native crude.
The US dollar was the instrument, because it was the real ticket to oil.
But what has the US got today? These days it backs the dollar with the productivity of others!
The greenback seems destined to follow the Confederate dollar and the Continental into the grave.
Eventually, the Federal Reserve will be forced to buy up the debt that foreign central banks will no longer purchase and that American investors cannot afford. That means long-run price inflation. This will push up the built-in cost of living adjustment in Social Security.
http://www.lewrockwell.com/north/north501.html
Dow vs. Gold by Gary North
Yes Gary, but what will the Fed buy back the debt with? More debt?