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A comment on USDC's Circle Moves $8.7B to Repo Agreements to Protect Reserves from US Default. Parent comment

Re:USDC's Circle Moves $8.7B to Repo Agreements to Protect R... by JumpCrisscross on Thursday May 18, 2023 @10:40AM (#35988641)
> then a hyperinflation correction after a scant few generations is also a moral imperative

This isn't what happens when a reserve unexpectedly currency collapses. The ensuing capital market collapse causes bank failures and depression.

To be clear, we're nowhere close to that. The United States isn't going bankrupt, it's heading towards technical default. Nobody questions its ability to pay, just its willingness to do so on time.

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Re:USDC's Circle Moves $8.7B to Repo Agreements to Protect R... by netbioserror on Thursday May 18, 2023 @11:10AM (#35989063)
>To be clear, we're nowhere close to that... Nobody questions its ability to pay

This is not a statement that will age well.

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Re:USDC's Circle Moves $8.7B to Repo Agreements to Protect R... by JumpCrisscross on Thursday May 18, 2023 @11:18AM (#35989205)
> This is not a statement that will age well

I'll stand by it. Ability to pay asks if the U.S. government has the ability to tax its population or incur inflation to meet its domestic-currency denominated debts. Anyone who thinks that's a plausible concern over the next 10 years is nuts. Anyone who is thinking about that as a risk factor over the next 25 years is already extremely comfortable.

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