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0 pointsluke54412mo ago0 comments

The FED can print as much money as it wants. Defaulting this way on US debt won't make the US a more desirable debtor nation.

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I think you are missing the point. The point is it would materialize as inflation instead of debt default. Not that there is no downside risk.

luke5441OP2mo ago

Inflation is a kind of default, I'm not missing the point.

The value of the dollar is based on the promise of 2% inflation of a basket of goods. Breaking that promise is default.

Well... no. Default is when you can't pay back what you promised. Not keeping inflation under a certain target.

Unless words just don't mean anything anymore. In which case, yes. Which could also mean no.

j / k navigate · click thread line to collapse

I think you are missing the point. The point is it would materialize as inflation instead of debt default. Not that there is no downside risk.

luke5441OP2mo ago

Inflation is a kind of default, I'm not missing the point.

The value of the dollar is based on the promise of 2% inflation of a basket of goods. Breaking that promise is default.

Well... no. Default is when you can't pay back what you promised. Not keeping inflation under a certain target.

Unless words just don't mean anything anymore. In which case, yes. Which could also mean no.

j / k navigate · click thread line to collapse