4 ms·

You are claiming that defaulting on sovereign debt would have no consequences?

by seoaeu 5y ago

ur-whale 5y ago
> You are claiming that defaulting on sovereign debt would have no consequences? First, at the sovereign level, it only has consequences if the lender has more guns than you. Seconds, most "debt" in OECD countries is not owed to sovereign entities, but to the countries population themselves, who if push comes to shove will just have to accept that their bonds are worthless if it is ever legislated to be thus.
- syshum 5y ago
  >> who if push comes to shove will just have to accept that their bonds are worthless if it is ever legislated to be thus. Yea, the history of the world is full of populations just accepting their governments new policies to screw them over.. There are never any consequences to that, the people just shrug and say them the breaks and go about their day <<sarcasm>>
  - ur-whale 5y ago
    > <<sarcasm>> Which is why it is much better to achieve the same goal via inflation, where after a couple of decade a 100$ T-bill isn't worth a cheeseburger.
chmsky00 5y ago
Of course a full stop of social norms today would have consequences. My point is it’s a social contract not a law of physics we cannot hope to bend. Our embedded memory and experience need not be the one we pass on.
syshum 5y ago
No nation ever defaults on sovereign debt, not in the age of Fiat (aka fake) money.. They just create more of their fake err fiat money to cover the debt, sure it is worthless but they "paid it off" See: the 1 Trillion Dollar Coin....
- seoaeu 5y ago
  That isn't true. If a country makes a habit of printing too much money, then creditors will start to insist on only loaning it money denominated in other currencies. And once it starts doing that, the country can be forced to actually default on its debts: https://www.forbes.com/sites/francescoppola/2017/11/14/venezuela-defaults/?sh=2b6324592755 https://www.forbes.com/sites/francescoppola/2017/11/14/venez...

You are claiming that defaulting on sovereign debt would have no consequences?

by seoaeu 5y ago

You are claiming that defaulting on sovereign debt would have no consequences?

> You are claiming that defaulting on sovereign debt would have no consequences? First, at the sovereign level, it only has consequences if the lender has more guns than you. Seconds, most "debt" in OECD countries is not owed to sovereign entities, but to the countries population themselves, who if push comes to shove will just have to accept that their bonds are worthless if it is ever legislated to be thus.

syshum 5y ago
>> who if push comes to shove will just have to accept that their bonds are worthless if it is ever legislated to be thus. Yea, the history of the world is full of populations just accepting their governments new policies to screw them over.. There are never any consequences to that, the people just shrug and say them the breaks and go about their day <<sarcasm>>
- ur-whale 5y ago
  > <<sarcasm>> Which is why it is much better to achieve the same goal via inflation, where after a couple of decade a 100$ T-bill isn't worth a cheeseburger.

chmsky00 5y ago

Of course a full stop of social norms today would have consequences. My point is it’s a social contract not a law of physics we cannot hope to bend. Our embedded memory and experience need not be the one we pass on.

syshum 5y ago

No nation ever defaults on sovereign debt, not in the age of Fiat (aka fake) money.. They just create more of their fake err fiat money to cover the debt, sure it is worthless but they "paid it off" See: the 1 Trillion Dollar Coin....

seoaeu 5y ago
That isn't true. If a country makes a habit of printing too much money, then creditors will start to insist on only loaning it money denominated in other currencies. And once it starts doing that, the country can be forced to actually default on its debts: https://www.forbes.com/sites/francescoppola/2017/11/14/venezuela-defaults/?sh=2b6324592755 https://www.forbes.com/sites/francescoppola/2017/11/14/venez...