TimocracySo... what's the best way to protect oneself and one's retirement from the all-but-inevitable default on the national debt?
Edmund Edgar@Timocracy What country is this?
@edmundedgar The US. But it will have ramifications worldwide.
@Timocracy The US borrows in its own currency which it can print, so if they default it's because they decided to protect the value of the dollar at all costs. So hold USD.
This is an extremely weird scenario though, conventionally a country that owes its own currency would devalue rather than default.
@edmundedgar exactly. Nothing is conventional anymore.
@Timocracy So if the thought is, "I have this exact scenario in mind involving default", maybe describe it and we can think how to handle it.
If it's "stuff is weird and the national debt seems like a lot and maybe everything will go to shit", the answer is a mix of stocks and bonds, foreign and domestic. Also add some productive crypto assets with a plausible story for how they create value and return it to tokenholders (most don't) as a defence against institutions failing.
lippard✅
@edmundedgar @Timocracy No, if the US defaults it's because the House GOP refuses to raise the debt limit and forces a default because they don't understand how anything actually works (or don't care).
@lippard They may not know or care how anything works but the people who fund their campaigns do @Timocracy
@edmundedgar @Timocracy I wouldn't bet on it for big money donors like the ones referenced in this story who bankrolled Greene. https://georgiarecorder.com/2021/01/28/big-campaign-donors-stick-by-election-denier-rep-marjorie-taylor-greene/
@lippard
Those guys are the exception not the rule, and their votes aren't needed to increase the debt limit, because the Dems will also vote for it
@Timocracy
Those guys are the exception not the rule, and their votes aren't needed to increase the debt limit, because the Dems will also vote for it
@Timocracy