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Re:Tether Withdrawals Top $10B by kravvall on Tuesday May 24, 2022 @06:32AM (#31490239)
> Right, because the banking system can always create dollars out of nothing to satisfy any outstanding liabilities.

Can they though? Don't they create new liablities with this? Effectively ending in "finance debt with more debt" scheme that has eventually got to collapse?

Re:Tether Withdrawals Top $10B by User23 on Tuesday May 24, 2022 @09:33AM (#31491862)
It’s a category error to confuse household liabilities with sovereign liabilities. So long as a sovereign currency issuer retains sovereignty it can expand its balance sheet freely. And yes through gross mismanagement it could provoke a revolution and thus lose sovereignty.