That’s a distinction without a difference. Issuing more fiat currency to inflate away burdensome debt service would also inflate away investors’ gains from holding bonds.
It’s absolutely a difference. Countries not sovereign in their currency (eg Greece) are slaves to the whims of the bond market. The US isn’t. The US doesn’t even have to issue bonds. It’s a relic of the gold standard.
You say inflation like it negates what I said, but it doesn’t.
Yes, I agree, what you said is true, but it’s also true that the purpose of Moody’s rating scale is to assess risk to investors rather than the soundness of the bond issuer.
That’s a distinction without a difference. Issuing more fiat currency to inflate away burdensome debt service would also inflate away investors’ gains from holding bonds.
It’s absolutely a difference. Countries not sovereign in their currency (eg Greece) are slaves to the whims of the bond market. The US isn’t. The US doesn’t even have to issue bonds. It’s a relic of the gold standard.
You say inflation like it negates what I said, but it doesn’t.
Yes, I agree, what you said is true, but it’s also true that the purpose of Moody’s rating scale is to assess risk to investors rather than the soundness of the bond issuer.