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Defaulting on the debt means anyone owning treasury bonds lose their money.

Fjolsvith 6y ago
Edit: The federal reserve is going to default, not the federal government. They are not the same. The central banks don't want the US to default. They want countries who are in debt to implement austerity programs and raise taxes on citizens. If the US defaults, other countries might just get the same idea. All these stimulus checks and forgivable small business loans are returning a little bit of the stolen money back into the pockets of Americans before the restructure. Why not withdraw all the cash from your bank accounts before filing bankruptcy? Who's the master of bankruptcy, again?
- touktouk 6y ago
  The liabilities of the Fed [0] are money in circulation, reserves accounts of banks (mainly to meet requirements) and the deposits of the Treasury. Besides the fact that it is not clear why the Fed may collapse when they can create money to pay back their liabilities, I am not sure what it would mean for the Fed to default on the bills and coins in circulation (?) or to wipe out the accounts of banks when those very banks are legally bound to hold money in those accounts. [0] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
  - Fjolsvith 6y ago
    Part of the restructure will be to perform an audit. When it is shown the fed has acted outside their purview, the federal government can legally argue the debt is null and void.
    - touktouk 6y ago
      This does not address my points. - A large chunk of the Fed liabilities are coins and bills. What does it mean for the Fed to "default" on those coins and bills?
      - Fjolsvith 6y ago
        You gotta find someone else who will take the bills. The coins you could probably sell to a scrap yard or someone who deals in precious metal. Most Americans won't have to worry about this, as they usually have only enough bills to last them to next payday. Everyone else should have been smart enough to get their wealth into something else. I know I've been warning my rich relatives over the last year. I've also been telling HN to buy gold. Will be interesting to see who all survives.

Edit: The federal reserve is going to default, not the federal government. They are not the same. The central banks don't want the US to default. They want countries who are in debt to implement austerity programs and raise taxes on citizens. If the US defaults, other countries might just get the same idea. All these stimulus checks and forgivable small business loans are returning a little bit of the stolen money back into the pockets of Americans before the restructure. Why not withdraw all the cash from your bank accounts before filing bankruptcy? Who's the master of bankruptcy, again?

touktouk 6y ago
The liabilities of the Fed [0] are money in circulation, reserves accounts of banks (mainly to meet requirements) and the deposits of the Treasury. Besides the fact that it is not clear why the Fed may collapse when they can create money to pay back their liabilities, I am not sure what it would mean for the Fed to default on the bills and coins in circulation (?) or to wipe out the accounts of banks when those very banks are legally bound to hold money in those accounts. [0] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
- Fjolsvith 6y ago
  Part of the restructure will be to perform an audit. When it is shown the fed has acted outside their purview, the federal government can legally argue the debt is null and void.
  - touktouk 6y ago
    This does not address my points. - A large chunk of the Fed liabilities are coins and bills. What does it mean for the Fed to "default" on those coins and bills?
    - Fjolsvith 6y ago
      You gotta find someone else who will take the bills. The coins you could probably sell to a scrap yard or someone who deals in precious metal. Most Americans won't have to worry about this, as they usually have only enough bills to last them to next payday. Everyone else should have been smart enough to get their wealth into something else. I know I've been warning my rich relatives over the last year. I've also been telling HN to buy gold. Will be interesting to see who all survives.