3 ms·
> There's no chance US will default on its debts, Why not? It has happened* before therefore it can/will happen again. * (more or less). I would count signifi
by baby_souffle 9mo ago
> There's no chance US will default on its debts,
Why not? It has happened* before therefore it can/will happen again.
* (more or less). I would count significant debt restructure (1790) or replacing promised gold with paper (1860-1930, 1970) or even a significant delay (1979) as a default... even if it was temporary in 1979.
- epolanski 9mo agoNone of those were defaults. The US has never defaulted on its debt, as never did Germany or Italy (speaking of state issued bonds, not war reparations).
- stephen_g 9mo agoThe bonds are only redeemable for USD. The Fed can always produce USD. So the Fed can always buy back any and all US bonds in existence. They would have to actively choose to default.