Gov. Pawlenty (R-MN) reportedly said this morning that US government Treasury bonds will soon be as worthless as all those toxic mortgage assets.
From the Saint Paul Legal Ledger’s Capitol Report, quoting Pawlenty (emphasis added) …
Secretary of State Clinton, in China about a week ago, [was] publicly pleading with the Chinese to buy our debt, because the federal government is now so reliant on debt financing that the point at which China or sovereign wealth funds or others discontinue buying the federal debt, the house of cards they have constructed in Washington DC comes tumbling down. They’re going to have the government debt equivalent, some years from now, of today’s mortgage crisis, in my opinion.
