3 ms·

You can't quite 'cancel out intergovernmental debt', as their sale (to extract their value) would cause devaluation. I am not sure how you would model the loss

• JumpCrisscross 5y ago
  > You can't quite 'cancel out intergovernmental debt', as their sale (to extract their value) would cause devaluation Not saying the U.S. default on that debt. Just that, for accounting purposes, if you're including far-in-the-future liabilities, you should also take into account the fact that every dollar of interest paid by the U.S. Treasury to the Fed ends up, more or less, back in the Treasury's account.