Quote:
Originally Posted by echappist
but that would imply you would believe the Federal Gov't to default on those bonds?
would be a scary prospect 
i mean, if this were any other debt-issuing country, I'd believe it, but we are currently the scarred (but good apple) amongst a barrel of rotten apples. where else is that money going to go? Responsible countries like Singapore doesn't issue nearly as much debt... |
Governments have ways of defaulting without actually defaulting. Inflation being the obvious one. If you buy a 30 year US bond, the payments in 2048 will be denominated in 2048 dollars, not 2018 dollars.
I mean, looking at the trends and sizes of these imbalances, I just don't see how we make good on all the checks our government has written.