Mike, the post wasn't meant to suggest that all bonds running off and new issuance would be bought with newly printed paper money, only that this is a serious issue that requires a serious amount of capital to be from newly printed money. Of course we know they spent all monies raised in the past and don't have any kicking around for bond maturities so they must raise the money to pay the bond holders who in tune can re-invest at record low levels of interest in the US and at much higher rates in Euroland where present interest rates pose a serious threat to their economic future versus their competitors, this is never good.

There is only default or inflate to provide any visible reasonable solution at this time given the lack of growth, political deadlock, rising costs of government and mountain of existing debt. For sure all things lead to money printing in various forms and in ever larger amounts for many years yet and bonds underlie the whole money raising/printing operation. This is one of the easiest economic calls ever unless there is an epiphany of biblical proportions.