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US government debt is now worth more than the US dollar its worth is measured in
by jamez1 10y ago
US government debt is now worth more than the US dollar its worth is measured in
- PhasmaFelis 10y agoOf course it is. If it was worth less than the US dollar, Obama would've paid it out of pocket change by now.
- adventured 10y agoDramatically disagree with the premise. I'd like to see someone put a value on owning the global reserve currency over the next 30 years (in a nation that owns 43% of all global private wealth, which is mostly accounted for in USD; with a global economy powered by commodities almost exclusively priced in dollars). US Government debt is worth maybe 1% to 2% of what the USD is really worth today. I don't believe you can account for a currency's realistic worth while ignoring all the assets primarily or solely denominated in that currency, to say nothing of the immense leverage / power / economic benefits that the global reserve status brings along (that alone is blatantly worth more than all US Government debt).
- jamez1 10y agoMy comment was half tongue in cheek, but it's still accurate. US government debt has to be paid in USD, it doesn't matter what other assets they own, that can only be used to buy USD. Unless you barter with bondholders and have them accept these other assets? But that misses the point, we all know the situation is manageable, but it's an interesting idiosyncrasy nonetheless.
- deleted 10y ago[deleted]