The Road to Default: Who's getting the most screwed?
Let's take a look at who gets the most screwed (who loses the most money) when bond prices collapse and the United States defaults.
Well until recently only about 55% of treasury's were held domestically. The rest was externally held by places like Japan and China. Now something like 67% is held domestically, which means when shit hits the fan, the majority of the burden will be on the U.S., however that isn't even the 1/3rd's of it. Considering that 33% is held externally, we could be in some trouble especially if China keeps looking to the Euro to diversify its investments. We could see even further downward pressure on treasuries leading to an even higher interest rate burden. I know I will keep shuffling through the default, but will John Boehner? The dude who has refused to make a deal with the Democrats despite pleading from the Economist Magazine, President Obama, Chairman Benny B and Financial Markets everywhere. Good luck America and keep dancin,