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A comment on U.S. Treasury Yield Curve Inverts for First Time Since 2007. Parent comment

Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by dragonwriter on Friday March 22, 2019 @10:39PM (#19468719)
> >2. Political dysfunction could cause the U.S. government to default notwithstanding its ability to print money

> This risk is likely also going to be true for the Dollar

It can't be, because it doesn't apply to the currency, which while it is structurally created by creation of debt is not a debt the government is obligated to pay and on which it can fail and default.

> so bonds don't carry any more risk than USD in this regard

Even if there was a default risk in the dollar, bonds necessarily have more risk since they are fully exposed to every risk to the currency they are denominated in and also their own default risk, which even if the currency had such a risk would sit on top of it.

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Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by Phlarp on Friday March 22, 2019 @11:02PM (#19468798)
Except that if/when political dysfunction does cause a default on the bonds, the currency gets its legs chopped out from under it.
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Re:U.S. Treasury Yield Curve Inverts for First Time Since 2007 by buttcoinslol on Saturday March 23, 2019 @01:17AM (#19469166)
Which makes it exceptionally unlikely to happen..

Although Brexit happened, so never say never I guess

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