Originally Posted by
NotMrNiceGuy
Could you clarify your point here? Clearly other countries are purchasing our debt because it’s backed by the full faith and credit of the US which is built on nothing more than reputation (reputation built over 250 years). We had private savings on the gold standard before we changed standards. What exactly is your point?
Other countries are investing in our risk free treasuries. They are not financing our debt. Our federal debt is comprised of treasuries. Which a lot of retirement funds are also invested in. To eliminate the federal debt (fiat money), that would require an elimination of private savings (fiat money private savers have accumulated.)
That is my point. Fiat money is built on reputation and productivity. That's why hyperinflations occur within countries that have remarkable decreases in productivity.