On Fri, Jun 4, 2010 at 1:43 PM, Jim Devine <[email protected]> wrote:
> We should remember that the U.S. is still the most powerful country in
> the world along several dimensions. This means that the rentiers are
> likely to keep their faith in the Treasury long after they've given up
> on California and Greece. (T-bills are still the safest of havens.)


In the simplest of terms, where else are they (i.e. the rentiers)
going to go? A few months back, it was conceivable that the Euro could
emerge as an alternative safe-haven. But that is not the case anymore.
-raghu.
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