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It wouldn't be the central bank: the central banks (are the only banks that) cannot fail due to the inability to pay out interest.
by throwawaymaths 3y ago
It 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