Viewing profile — 2dddd

No thats not true. It operates under expectations - the more liquid the asset, the more likely you'll be OK with accepting it in the context of a trade. The discount is for illiqui…

Inflation doesn't really capture what would happen. Debasement is the appropriate term.

Ofc the US can default and it will most likely in the event. Debasement is far more painful - the treasury will simply choose not to come good on the obligations.