if in the case of government defaults, currencies don't collapse, but instead there is a property swap. Where the property, owned by the debtor nation, is nationalized and the debt is cancelled.
Like in real estate, the house is the collateral on the loan, so, I believe, in case of government default, subsidiaries of conglomerates will be held as collateral.
People may say, how can you confuse a private company with a sovereign government, and to that I would say, that company has to have holdings of some kind and if the currency collapses or business in general, what would the company be worth anyways? Besides, it would create a construction boom to rebuild infrastructure that was exported anyways. And who doesn't like construction booms?
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment