You’ll also notice that they are constantly in problems and needing **bail-outs**. Or the other outcome is the big ones swallow up the little ones that the *Federal Reserve Bank* ***says*** are insolvent. I think a lot of the debt is worse than garbage and shouldn’t even be rated by the rating agencies. 

Yeah but banks and nations treat this debt we owe like mortgage backed securities are assets for folks 

BlokchainB

econ

Central Banker Affirms, Deflation "Is a Benefit for the People"

Rothbardian_fanatic

Yes, it can default and has defaulted at least three times to my knowledge; 1879 or 8, 1932 and 1971. I think we are on course for another default. We are in the same position as Spain and England were in when they were world powers.

BTW, whose books is debt treated as an asset? Anybody you know? The one place where it could affect me is in, say, a pension fund. I own no debt assets beside FRNs.