Subject: Re: OT - The Market
"I fear the only hedge that will work if inflation gets sticky, (causing another 2022 type equity sell off, perhaps exacerbated by sovereign debt growing concerns of swimming towards the default vortex, combined with an injection of old fashioned fear, not seen for a while and central banks unable to rescue this time) are long dated out of the money puts on the most speculative equity securities, of which there are many to choose from."

It should be noted that countries that have their own currency (and central bank) don't ever have to default on debt in their own currency. They simply print more currency. Yes, that is bad from an inflation standpoint, but inflation is a different beast than default. Countries that borrow in foreign currencies can default on that debt. The U.S. does not borrow in foreign currencies though so it won't have to default.

Now a country like the U.S. might default on its own currency denominated debt if it gets stupid and stubborn are simply refuses to pay its bills. But that is a political sideshow by a dumb congress (or a portion of them).