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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (262361)	4/22/2008 11:01:28 PM
From: TimF	Read Replies (1) \| Respond to of 281500

The US Government is, for all intents and purposes for our lifetimes. No it isn't, and its never been. The likelihood of a US default is very, even extremely low, but its not zero, or even infinitesimal. More importantly default isn't the only risk. A possible negative real rate of return is a risk, in a certain sense even just a pathetic real rate of return is a risk. And that's just for investment in US government securities. Counting on income from government programs, has political risk, that has nothing to do with the idea of default. US Government bonds come pretty close but nothing is perfect. Your promised future Social Security benefits do not amount to owning US government bonds.