We tend to use the word “safe” as though it has only one meaning.
But a life jacket won’t put out a kitchen fire. A smoke detector won’t help much during a flood. They are all safety equipment – they simply address different dangers.
The concept of “financial safety” works the same way. In one sense, there’s no such thing as “financial safety” at all. Just varying types and levels of risk.
An asset can be stable in price, but vulnerable to inflation. Easy to sell, but dependent on another institution’s promise to pay. It can carry almost zero default risk and still become a liability during a political dispute.
That last category of risk is…
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