“Can I have a loan….? Anyone? Helloooooooooooooo”

In Yahoo News it is reported that:  The US will borrow $0.46 on every dollar it spends moving forward.

My question: From who will they be borrowing?

From David Frum: “The powers that the Obama administration claimed in order to arrest the financial crisis and mitigate the recession are being used and abused in ways that are underming the legal and financial stability of the United States. Investors: You are warned”

Translation: DON’T INVEST HERE (note: the bit in the Brer Rabbit story that is important is that someone has to BUY the government issue bonds for the Government to be able to borrow money…)

From Bill Frezza: “Profit? There’s no profit to incentivize risk taking in this country, only sacrifice! Law? There’s no law to protect the politically unfavored in this country, only derision! …. 

think for a moment only about the pragmatic consequences of the administration’s reorganization plan.

Why would anyone lend money to heavily unionized companies knowing that if things went wrong, the president and his men could trash their security interests by executive decree, hold them up to public vilification, and subject them to future retribution by regulators? Why would anyone buy the shares of TARP-backed banks or invest alongside them knowing that their executives have proven their willingness to sacrifice shareholders’ interests and throw co-investors under the bus any time the president snaps his fingers? Why would foreigners buy the distressed debt of American companies knowing that this debt cannot be secured by law but only by political clout?”

Yikes!!! So, that eliminates the VCs, shareholders, foreign creditors…who exactly is going to fund the USA government debt if not those three to four entities? Do we just print more money & hope for (spare) change?