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countless countries have defaulted on their debt and still get $ see greece, latin america, russia, etc etc
by throwaway98797 4y ago
countless countries have defaulted on their debt and still get $
see greece, latin america, russia, etc etc
- foobarian 4y agoAlso those countries' national currencies are not the most popular oil exchange or global reserve currency. Apples to oranges (or maybe pears?).
- neilknowsbest 4y ago> $ It is observed that sovereign borrowers that inflate their way out of debt find their ability to borrow in the local currency reduced. They may still be able to borrow USD, though. Argentina in particular comes to mind, with something around 50% of total government debt denominated in USD [0]. Even Russia appears to have $40B in USD or EUR debt (private borrowers in Russia have another $100B or so) [1]. Of course, they can still outright renege on this USD denominated debt but it removes the option of inflating it away. [0] - https://www.stlouisfed.org/on-the-economy/2021/august/dollar-exposure-public-debt-asia-latin-america https://www.stlouisfed.org/on-the-economy/2021/august/dollar... [1] - https://www.nytimes.com/2022/03/15/business/russia-debt-bonds-default.html https://www.nytimes.com/2022/03/15/business/russia-debt-bond...