Governments are perched atop a mountain of debt, and the question of how to reduce it has become one of the most pressing long-term challenges for the economy. Broadly speaking, there are three ways to deal with debt:
- Default, the least palatable option
- Growth, the most desirable but unlikely
- Inflation, the most likely outcome
Stable inflation expectations: A false comfort?
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173 sats \ 5 replies \ @Undisciplined 11h
Inflation is really just another form of default, sort of. I guess it depends on what everyone's expectations were.
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42 sats \ 2 replies \ @kepford 8h
How many times has the US defaulted on the "dollar"?
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0 sats \ 1 reply \ @Undisciplined 7h
I don't recall off the top of my head. I've seen articles where they list them all out.
FDR gold confiscation and revaluation is one
Bretton Woods is another
Nixon suspending gold convertibility is another
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42 sats \ 0 replies \ @kepford 7h
And yet multiple politicians have acted like this never happened. Biden is the one that comes to mind first but I know he's not alone.
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42 sats \ 1 reply \ @0xbitcoiner OP 11h
Huh, good take. Never really saw it like that, kinda feels like a slow, quiet default!
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33 sats \ 0 replies \ @Undisciplined 11h
Yeah, but that's only true if the if the bond holders weren't expecting it.
It's probably more accurate to say that inflation above expectation is a form of default.
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21 sats \ 1 reply \ @cascdr 9h
I immediately think of this music vid when someone says Big Bad Wolf https://www.youtube.com/watch?v=Gch6SY2TA_o
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10 sats \ 0 replies \ @0xbitcoiner OP 9h
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