Who insures the T-bills? The Federal Reserve System. Who insures the Federal Reserve System? No one. It doesn't need insurance. It can create money.
Then who insures the purchasing power of the dollar? The central banks of the world, which hold dollars as legal reserves for their own currencies.
What happens if they decide not to add to their holdings of dollars?
[What we can look forward to includes:] rising prices for imported goods, rising domestic interest rates because foreign central banks are not buying Treasury debt any longer, unemployment, bankruptcies, defaults.
And when the checks from
[Excerpt of an article by Gary North]