S&P's downgrade is legitimate, even "insufficient," Paul Brodsky writes. Implicit is the...

|By:, SA News Editor

S&P's downgrade is legitimate, even "insufficient," Paul Brodsky writes. Implicit is the growing likelihood that the Fed will have to "manufacture sufficient base money" with which systemic debt can be repaid. "The downgrade is effectively a currency downgrade." Treasury obligations always will be "money-good, but principal and interest will be repaid with bad money."