It’s possible, but I’m not sure if that sort of “short selling” or snapping up “discounted” assets applies when it’s not just a single sector crashing, but all of them plus the basis currency simultaneously. It could even be that you can’t even get out of the dollar and into a “safe” currency once it all goes down, because the IOU that’s been backing the dollar for generations will have been voided. Nobody will want to trade their valuable currency for dollar toilet paper.
Then again I’m not an economist so I’m really just guessing as to how this would play out. But my understanding is that this debt, which is used as a political football stage prop every two years, is basically the thing which has kept the global economy relatively stable over the last fifty years. Without it, everything comes crashing down.
It’s possible, but I’m not sure if that sort of “short selling” or snapping up “discounted” assets applies when it’s not just a single sector crashing, but all of them plus the basis currency simultaneously. It could even be that you can’t even get out of the dollar and into a “safe” currency once it all goes down, because the IOU that’s been backing the dollar for generations will have been voided. Nobody will want to trade their valuable currency for dollar toilet paper.
Then again I’m not an economist so I’m really just guessing as to how this would play out. But my understanding is that this debt, which is used as a political football stage prop every two years, is basically the thing which has kept the global economy relatively stable over the last fifty years. Without it, everything comes crashing down.