2dddd

3 ms·

1. 1.▲
   by 2dddd 1mo ago

   No thats not true. It operates under expectations - the more liquid the asset, the more likely you'll be OK with accepting it in the context of a trade. The discount is for illiquidity.
2. 2.▲
   by 2dddd 1mo ago

   Inflation doesn't really capture what would happen. Debasement is the appropriate term.
3. 3.▲
   by 2dddd 1mo ago

   Ofc the US can default and it will most likely in the event. Debasement is far more painful - the treasury will simply choose not to come good on the obligations.