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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (42290)	4/15/2011 5:17:24 PM
From: Dr. Ipsofacto	Read Replies (1) of 78743

EKS, Great idea. A preferred treasury backed by hard assets though I don't technically if it could still be called a bond. The fed gov owns plenty of unutilized assets. Land, gold, and mineral rights are all viable options. The gov owns ~700+ million acres and who knows how much gold sitting in Kentucky. I like your idea independently and outside of a tool to transition or soften a sovereign debt crisis. The Federal Reserve doesn't have the ability to issue US gov debt. The Treasury Department would have to create these collateralized preferred bonds and getting that done would almost certainly take an act of congress. Then your idea takes a spin cycle in political milieu of these United States. Some problems though. The value of these assets might not be enough to convince some it’s worth the risk. I haven't run the numbers but with all of our current debt the treasuries might be backed for less than pennies on the dollar?? I'm also not sure how I feel about China owning any of the physical US upon default. I think the solution might be not to default on our current debt. Dr.I

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