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You're acting as if default risk is the only relevant risk to creditors. Inflation risk is just as real. You can't just wish it away by saying it's "why dollars
by bobcostas55 8y ago
You're acting as if default risk is the only relevant risk to creditors. Inflation risk is just as real. You can't just wish it away by saying it's "why dollars are safe". And then there are other risks on top of that - liquidity, reinvestment, etc.
- dragonwriter 8y ago> You're acting as if default risk is the only relevant risk to creditors. No, I'm correctly characterizing inflation risk, which—by definition—does not involve losing money you had or anticipated. > You can't just wish it away by saying it's "why dollars are safe". No, the perceived lack of significant actual inflation risk is why dollars are considered safe, not the risk category itself.