SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GST who wrote (54055)2/17/2006 9:25:06 AM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
What was the US government deficit at that time? What was the trade deficit? The current account deficit?

they were already at all-time highs and dollar bears had already been making the same arguments you're making now for the previous decade.

There will be no way to pay it back.

LOL! why do you think US Treasurys are considered the safest investment? because, unlike an AAA-rated private company, the US govt can just print the dollars it uses to pay creditors. there is no question of paying it back. that is why short-term Treasurys are the safest security. with long-term, the risk is not with credit but with duration, because nobody knows what the nominal payback dollars will be worth in 10, 20, or 30 years. therefore, longer bonds have much higher standard deviations than 5-yr and shorter. unfortunately, the historical evidence does not suggest long bondholders are sufficiently compensated for their extra risk. the returns on the 20yr barely exceed the returns on the 5yr.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News