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The assets don't disappear. Gold doesn't disappear. People will still want to trade. They'll have assets and want different assets. Barter stinks. Countrie
by david927 5y ago
The assets don't disappear. Gold doesn't disappear. People will still want to trade. They'll have assets and want different assets. Barter stinks. Countries will have surplus grain but want, say, tech. They can use a stable currency, say the Swiss Franc. Or they can use a scarce resource with a historical use as a currency, like gold.
And defaulting doesn't mean you get off, scott free. When you default and go bankrupt, there's an effort to recoup losses. Germany was encumbered with huge debt from World War One and went into full hyperinflation and eventually paid it off... in 2010.
Please, read that essay. It's fascinating and talks about things much better than I can.
- AnimalMuppet 5y agoI was done after the third paragraph: > One is that Federal Reserve stopped reporting money supply after hitting $28 trillion, signaling that the US Dollar is defaulting. It may be signalling that the dollar is inflating. That it's depreciating. But defaulting? How does a currency default? What would that even mean? Nope. Done.