Forum Post: Trusting America is stupid

America reneged on debt payment

The super committee failed. That failure was supposed to trigger an agreement to budget the worse deal possible. The concept was supposed to make sure a budget would be created one way or the other. But in pure hypocritical American fashion the plan now is to renege on the trigger deal.

Only idiots would lend America any money and with yields at there all time low (treasury prices are at all time high) there will be a huge liquidation to bail out of the risky treasury debt securities. For example, if China increases the price of its own currency, they would stiff themselves. Before China changes its currency they would be stupid not to sell the $1.148.3 trillion (down from $1.175.3 trillion October 2010).