Though the Fed cannot issue treasuries without permission of Congress, rather than to allow a default of U.S. debts and cause untold havoc around the world "could Obama issue his own treasuries?" that could be redeemed for money or regular treasuries before he leaves office?
This is one way to temporarily resolve this crisis before the world's economic system potentially collapses from the U.S. Economy collapsing within 2 weeks of going past October 17th without a resolution between Republicans and Democrats. The amount of chaos that could occur worldwide because of a U.S. Governmental default is worse than the Lehman Brothers collapse by far.
So, what we are presently headed for would be a World Wide Lehman Brothers collapse this time which would be potentially worse by a factor of 10 or 100. Because no one really knows just how bad this could get just like with Lehman Brothers.
In other words no one really knows what would happen and just how bad it could get worldwide because no one has ever seen the U.S. go into default for any length of time before.
So, maybe Obama could issue his own treasuries to keep the nation from going into default?
So, what if the U.S. goes into default for 1 month, 2 months or longer?
What is known for sure is that a Full Blown recession worse than 2008 would occur within 2 weeks of a U.S. default.
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