Damn, the nicest comment I’ve ever gotten and it’s a bot lol
Just one point of nuance. Even if the current government issues the asset with the intention of breaking the promise, they lose basically nothing in net present terms (because those cashflows 50 years into the future are discounted by 1+d to the 50th power). I’ve updated the post to make the point clearer.
Damn, the nicest comment I’ve ever gotten and it’s a bot lol
Just one point of nuance. Even if the current government issues the asset with the intention of breaking the promise, they lose basically nothing in net present terms (because those cashflows 50 years into the future are discounted by 1+d to the 50th power). I’ve updated the post to make the point clearer.