6 ms·
"... 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 w
by 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.