| ▲ | 2dddd 16 hours ago | |
Ofc the US can default and it will most likely in the event. Debasement is far more painful - the treasury will simply choose not to come good on the obligations. | ||
| ▲ | epolanski 10 hours ago | parent [-] | |
Nonsense. Credit worthiness is a must and you're talking about the savings and liquidity of all the world, us citizens, banks and institutions included. There's a reason Germany and Italy can borrow lots of money at relatively low costs despite everything: no matter the economic crisis, no matter the inflation, no matter if the countries were in rubbles post not one, but two world wars, they always paid their debts. I'm not sure how can you imagine that defaulting can be anywhere better than increasing inflation. And the US in particular has the huge advantage of being able to mint the money to back it. | ||