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Hindsight is 20/20, so let's use it. How many times has the "too big to fail" hedge worked out favorably for everyone involved?

amrocha 2y ago
There is no failing for a country with a sovereign currency. Fish can’t drown in the sea. A country is not a business.
- mecsred 2y ago
  What do you mean "there's no failing for a country with a sovereign currency"? There are many, many examples of countries failing. Some of them had sovereign currencies. Sure they can't "run out of money" if they can print more. Along with many more examples of being able to adjust internal values and metrics. This is a very different thing from not being able to fail.
  - amrocha 2y ago
    I’ll be clearer. The failure mode that you’re talking about, where debt ratios are so high that a country isn’t able to service its debt, is economically speaking impossible. This isn’t “too big to fail”, it’s the system working as intended.
    - mecsred 2y ago
      I'm not sure why you think that's what I'm talking about, because I never brought that up. In fact I agree with that point. The apparatus will never report a failure because it has an incentive not to. The whole system is built and described in a way to make failure seem impossible because confidence is necessary for it to work. But when numbers and reality don't match, reality wins.
      - amrocha 2y ago
        That’s not what I said at all! There’s no failure being hidden, public deficits are a normal feature of fiat currencies.
        mecsred 2y ago
        Again, I'm not making any comment on the deficit. Literally never brought it up. I'm talking about people losing confidence in the dollar.
- tanseydavid 2y ago
  >> There is no failing for a country with a sovereign currency. Fish can’t drown in the sea. A country is not a business. So, a country is not a business but it is comparable to fish? Are you seriously claiming that there is no precedent?

amrocha 2y ago

There is no failing for a country with a sovereign currency. Fish can’t drown in the sea. A country is not a business.

mecsred 2y ago
What do you mean "there's no failing for a country with a sovereign currency"? There are many, many examples of countries failing. Some of them had sovereign currencies. Sure they can't "run out of money" if they can print more. Along with many more examples of being able to adjust internal values and metrics. This is a very different thing from not being able to fail.
- amrocha 2y ago
  I’ll be clearer. The failure mode that you’re talking about, where debt ratios are so high that a country isn’t able to service its debt, is economically speaking impossible. This isn’t “too big to fail”, it’s the system working as intended.
  - mecsred 2y ago
    I'm not sure why you think that's what I'm talking about, because I never brought that up. In fact I agree with that point. The apparatus will never report a failure because it has an incentive not to. The whole system is built and described in a way to make failure seem impossible because confidence is necessary for it to work. But when numbers and reality don't match, reality wins.
    - amrocha 2y ago
      That’s not what I said at all! There’s no failure being hidden, public deficits are a normal feature of fiat currencies.
      - mecsred 2y ago
        Again, I'm not making any comment on the deficit. Literally never brought it up. I'm talking about people losing confidence in the dollar.
tanseydavid 2y ago
>> There is no failing for a country with a sovereign currency. Fish can’t drown in the sea. A country is not a business. So, a country is not a business but it is comparable to fish? Are you seriously claiming that there is no precedent?