Comment Re:Big problems ahead (Score 2) 283
I know some economists like Krugman disingenuously state that a government in control of its own currency printing presses can never default, but that's a lie. If these people bought the bonds in good faith and the government decides to pay them off with hyperinflated, worthless currency that they printed, then that's theft (at least morally speaking).
No, it's not theft. It's just the Super Chicken rule: they knew the job was dangerous when they took it.
Bond purchasers know that currencies may be debased, and that governments may even just default; happens all the time. But they gambled that the likelihood of getting a return on their investment was greater than of losing it, and that it was a better option than putting the money elsewhere. But there's no rock solid guarantee that absolutely cannot be broken.
Next you'll say that discharging debts in bankruptcy is immoral or something similarly stupid.