Late 2025 low risk changes to ISA and SIPP

solidpro

Does anyone know the closest Vanguard fund to a VLS which is ex-USA?

ColdIron

A sort of spag bol ex bol?

Altior

In economic terms, there is no public debt crisis for countries who borrow in the same currency they issue. I'm going to pass over the question of why so many people say otherwise as being a question of politics, not economics.

It's an economic one as fiat currency is just a simple way of facilitating the exchange of value. If the underlying value doesn't increase, but there's more currency, the result is asset inflation and real world inflation. The only viable tool a somewhat sensible country has to combat inflation is the central rate. The obvious catch 22, the easy lever for authorities to reach for is to create more currency (eg GFC). Creating more currency leads to asset inflation and real world inflation, eventually you're are forced to increase the central bank rate...= much much more difficult to service debt issued at the previously arbitrarily low borrowing rates. 

The US has the 'fortune' of being the reserve currency. So has a slightly different dynamic. But its ability to create currency without fatal (in economic terms) ramifications is not infinite. 

Of course you could get into the weeds around who is buying the debt issued if it's not the issuing central bank. The market prices up the perceived risk. This means, theoretically at least, markets (and countrys/blocs), have the power to manipulate the policy of a theoretically sovereign nation (eg black Wednesday).