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>> I - a relatively sophisticated, learned observer - have a hunch that at the very margins government finance collapses all the way back down to the simple rul
by enraged_camel 6y ago
>> I - a relatively sophisticated, learned observer - have a hunch that at the very margins government finance collapses all the way back down to the simple rules of household finance.
On what exactly do you base this hunch? Because it hasn’t held true, ever.
- rsync 6y ago"... because it hasn’t held true, ever ..." Argentina has given us two examples of it just in the last 20 years. Not a perfect example as the Argentine debt was not denominated in a currency they could print ... I would further point to the "Nixon Shock" as an example where a country (the US) that can borrow in its own currency was forced by (global) economic realities to undertake what some would label a "soft default". I am on my way to lunch and am limited by what comes to mind in just this fleeting moment - I beg your pardon for my dearth of examples. [1] https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock [2] https://www.livemint.com/Money/57inMm5EbLi1soOnOrMk1J/Did-the-US-default-in-1971.html https://www.livemint.com/Money/57inMm5EbLi1soOnOrMk1J/Did-th...
- jnwatson 6y agoBoth situations demonstrate almost the opposite of your point. The Nixon shock was abandoning of gold as a base currency. Your household cannot abandon your base currency. If Activision-Blizzard borrowed its debt in World of Warcraft gold, they would never be in default. The same applies to countries that print their own currency.
- rsync 6y agoLike I said - a hunch. I hope we can indulge one another with such things here.