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Wasn’t trying to dick measure nvda vs fed. More thinking thru guarantees vs assets for the two institutions

• JumpCrisscross 22d ago
  > guarantees vs assets for the two institutions The Fed can never default on any dollar-denominated debt. There is no similar currency that Nvidia can create ad infinitum. That said, the number I think you're looking for in respect of the Fed is $30 to 40 trillion. It's about U.S. GDP. And it's also about U.S. bank and money-market assets plus the Fed's balance sheet. If every American bank failed, this could be the amount of money the Fed would have to create. That said, Treasury running out and e.g. defending the euro-yen could easily increase that cross section in practice.
  • jmalicki 22d ago
    > There is no similar currency that Nvidia can create ad infinitum. It can create obligations to provide future GPUs in return for present money. Yes at some point people might start to question, but what are the true hard limits there, especially once SPVs and such start to get involved to shuffle things off the books?
    • JumpCrisscross 21d ago
      > what are the true hard limits there None. But IOUs don't have the power of demand to pay taxes.
  • chadgpt3 21d ago
    The Fed doesn't issue debt. It has nothing to default on.
    • JumpCrisscross 21d ago
      > Fed doesn't issue debt The Fed borrows massively through repos when it wants to tighten conditions.