2 ms·
> Why would it default? It has USD (fiat it controls) denominated debt, it can literally pay any debt through monitory expansion. Not if it wants to be able to
by medvezhenok 5y ago
> Why would it default? It has USD (fiat it controls) denominated debt, it can literally pay any debt through monitory expansion.
Not if it wants to be able to borrow in the future... Look at what happened in 1978 - they had to issue non-USD bonds since foreign banks weren't willing to purchase USD bonds: https://en.wikipedia.org/wiki/Carter_bonds https://en.wikipedia.org/wiki/Carter_bonds