“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.”

Indebted countries are vulnerable to a precipitous loss of confidence even though that risk is barely acknowledged in bond markets, the Bank for International Settlements warned.

The Report:

World Bank’s view

Global Wave of Debt:

https://thedocs.worldbank.org/en/doc/279031577823091771-0050022019/original/GlobalWavesofDebtfullreport.pdf

Perhaps the BIS and World Bank have never hear of MMT?

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Likely bankruptcy of badly managed nations has little to nothing to do with MMT (except as something to whistle to the most hopelessly idiotic) and lots to do with corruption by the powerful mixed with mad management by world lenders.

d fb

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Put simply, modern monetary theory decrees that such governments do not rely on taxes or borrowing for spending since they can print as much money as they need and are the monopoly issuers of the currency.

Nations and their banks will not go bankrupt as they can always print money. Trouble is their currency then becomes trash:

Imgur

Inflation is a much larger matter.

The liberals are beating it. Part of that process is spending on infrastructure. We see now inflation is in the 2.6% region.

Inflation has been beaten.

The debt is now stabilizing.

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My Uncle bill is stabilized. He died ten years ago :slight_smile:

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The USD and Uncle Sam are going strong.

Sorry about your Uncle "b"ill.

Perhaps you need to invest wisely? I donno.

I hope that you are right. Warning from the FDIC and Federal Reserve:

The agencies have jointly determined that each weakness identified in the 2023 plans from Bank of America, Goldman Sachs, and JPMorgan Chase is a “shortcoming.” A shortcoming is a weakness that raises questions about the feasibility of the plan.

https://www.fdic.gov/news/press-releases/agencies-announce-results-resolution-plan-review-largest-and-most-complex-banks

Just highly leveraged betting. What could go wrong:

The staggering total notional value of these derivatives exceeds $168 trillion, raising significant concerns about potential systemic risks.

The size of the US economy is under $30 trillion

The assumption is the US is so Shiny that the rest of the world will tolerate an infinite amount of irresponsibility, corruption, and foolishness.

Steve…once, the UK was Shiny

The Liberals have brought inflation way down. It is no longer an issue.

I would call that responsible.

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old news out of context. The bank back in early 2023 needed bailing out. The system has not had major problems since.

While that is certainly a large number, it is a bit difficult to put it into context (which admittedly is part of the problem).

I can’t find the official source for this data but you will find various links quoting the following:

55% – 60% of option contracts that are closed out prior to expiration (their value ends up being some fraction (either larger or smaller) of the face value - but most likely less than face value based on the ratio of worthless expiration vs exercised)
30% – 35% of option contracts expire worthless (so their value ends up being fictional)
10% of option contracts are exercised

Hawkwin
Not a fan of naked options.

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Nor me, but the figure is widely quoted “cited by the FDIC” is the nearest I got. Most of the derivatives will be over the counter ones (private bets) that do not appear on anyone’s balance sheet.

The BIS has some 2022 figures: