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If you're referring to US federal government debt, it's basically got a zero risk of default. You'll always get your principal and interest back in full. Why? T

If you're referring to US federal government debt, it's basically got a zero risk of default. You'll always get your principal and interest back in full. Why? The debt is denominated in USD and who can print any amount of USD at will? The Fed. Edit: I think I get your larger point though, runaway deficit spending of the kind we've had in recent years does destabilize the riskiness of holding US assets / currency.

ericd 9y ago
It has a very non-zero inflation risk, though.
jnordwick 9y ago
It was just a throwaway line. I should have said municipal, but given the target audience and all. I'm not even a deficit hawk, but i thought it was funny :)