> as it can simply print dollars. It will never be in formal default (...). The consequence for the US economy won't be pretty though.
Argentina tried doing that, resulting in 100% inflation per month.
Argentina tried doing that, resulting in 100% inflation per month.
The US dollar bit is the problem.
From the perspective of anybody outside the US the US dollar is a bond - a zero percent bearer bond.
Therefore it is nothing more than a bond swap with a change in interest rate and term. The entity “owing” doesn’t change
Exactly, just between a 20 and a 30 percent of our debt is in Argentine pesos. [0]
0: https://www.argentina.gob.ar/economia/finanzas/graficos-deud...