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Not necessarily. The value of debt as an asset is often less than the amount owed, because there is a non-trivial risk that the debt will not be paid back in fu
by thescriptkiddie 8y ago
Not necessarily. The value of debt as an asset is often less than the amount owed, because there is a non-trivial risk that the debt will not be paid back in full. Furthermore, if you are a central bank, you can effectively borrow money from your future self.
- vesrah 8y agoAren't all loans effectively borrowing money from your future self? :)
- TrinaryWorksToo 8y agoNot if you default or die. Technically, you're only borrowing from your future wealthier self.
- candiodari 8y agoThat wouldn't affect the balances though. So if you simplify to liabilities (as you say, non-discounted) + assets = 0, that would be true.
- samsonradu 8y agoCould also be more, when interest adds up to the debt.