No one is more sensitive to the purchasing power of the dollar than a foreign creditor..

America is not Greece, Portugal, Spain or Ireland, at least not yet, but the fiscal state of these nations are not all that different from that of America, with one glaring exception – America can print money at a moments notice with which to pay its debts. But as we have seen, that only means that when the U.S. government’s funding crisis does come to America, it could make what’s happening to these countries look like child’s play.

So, back to the original question, what’s keeping the U.S. government’s inflation engine in the yard? The answer, foreign creditors. And when they say it’s time to exit, it won’t be long before our politician friends will have no other choice but to either come clean with Paul, and cut spending, or, and pardon the vernacular, tax the crap out of Peter via the Federal Reserve’s printing press.

- More from Michael Pollaro