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Finance allah shmoop what is a yankee bond We're safe

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We're sound we're saying at least that's how we look

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financially when you know the u s has compared with

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most of the rest of the world that's why a

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bunch of countries issue their own bonds denominated in u

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s dollars you know countries like panama el salvador micronesia

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and macron asia Well ours is ah hard currency and

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that we don't or at least haven't historically created massive

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ten percent a month inflation to deflate the value of

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our own currency and well that would make it super

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easy for our government to pay off its ludicrously high

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death but we don't do that We respect the people

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who loaned money to us including our own citizens So

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we have a hard currency It just kind of stays

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where it is Yes there's inflation Yes we raise the

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rates a little bit here and there defended but generally

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just kind of does its thing So we fight hard

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to keep that trust that the rest of the world

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often values more than well trust in their own governments

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or at least their own government's ability to manage their

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currency when they issue say argentinean bonds payable in u

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s dollars Well then that's a yankee bond And we 00:01:14.819 --> [endTime] are the banker And well they are the yankee

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