oh sure, agree government is not perfectly reliable, as you point out. you are probably right about mispricing.. of course government bond is less likely to dis

oh sure, agree government is not perfectly reliable, as you point out. you are probably right about mispricing.. of course government bond is less likely to disappear altogether than any one corporation. and the bonds are just used to leverage further lending. the rate doesn't matter as much as the published (low) market risk. but anyway, the gp was discussing issues with government taking or holding debt indefinitely. I was just pointing out that government can use it's power and position to nullify the political issue of interest on debt that you rightly brought up. from the lender point of view that is not a great deal, but I don't see why interest needs to be an integral part of government debt.. as it can, and as we seem to agree, mitigate the risk, demand and inflation factors I mentioned. through fair means or foul. and if the market declines the offer, the government can increase the supply of money.