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As the article points out, in this case the bank is the central bank and letting it fail means collapsing the US economy (eventually).
by mdorazio 3y ago
As the article points out, in this case the bank is the central bank and letting it fail means collapsing the US economy (eventually).
- throwawaymaths 3y agoIt wouldn't be the central bank: the central banks (are the only banks that) cannot fail due to the inability to pay out interest.
- sokoloff 3y agoThis is a very strong premise, but not an absolute truth. All of the discussions around the US debt ceiling are largely about maintaining confidence that interest will be paid.
- throwawaymaths 3y agoThe fed can always QE to pay the debt. Debt ceiling is mostly about other contractual payment obligations by the government. Remember, the government != the fed