bankruptcy for a country means changing how money and debts are accounted for, not shutting things down.
Discussion
bankruptcy is just restructuring ( a rewrite of accounting )
like United Airlines once operated in years-long bankruptcy: planes flew, business continued
when a company is bankrupt, it still operates
the same goes for the US, the economy keeps running
if the US goes through bankruptcy, your money and bank accounts stay intact
loans might turn into rent
the government temporarily owns all assets and then sells them back to people, often cheaper than before
this resets the financial system fairly, keeping the economy running smoothly without big losses.
NEW SOVEREIGN ACCOUNTING STARTS WITH 3 RULES:
1)
the govt owns the country
the state is a firm
the nation is its property
the mission of the state is to cultivate the nation:
by governing it well
( like what part do you disagree with lol )
2)
FIAT currency is gov equity
dollars are shares in the US GOV
they are pieces of paper that have equal value and convey no other right
they are shares in the GOV
3)
securities are formal
markets are stable when there are no informal securities
formalization produces stable interest rates set by supply and demand at every term
informal securities are vague or unwritten promises that may or may not be legally binding
“informal securities” may sound like a financial category that exists in the third world
it does. it also exists in the First World.
in fact ( as we’ll see )
if all informal securities were suddenly cancelled, First World finance would instantly implode.
this does not mean that informal securities are vitamins
they are not vitamins. they are more like addictive drugs
getting off these drugs will be dangerous and difficult
what is this strange financial system we have?
boomer finance
but don’t just pull the trigger on that, ok?
winding down boomer finance is like shutting down a nuclear reactor, except worse...