can any city boys answer me this?

[andymc]

if we are in a state of financial meltdown where will the fed get the 700 billion, im aware it has a gold reserve but would it be selling it?
would they borrow from other countries as surely they will be over a barrel, anyway whats the interest on 700 billion, these things keep me up at night!
andy

[Zod]

they'll borrow it in the form of Treasury bonds that the Chinese inter alia are very keen to buy. The interest will be around 2%, so annually around $14 billion.