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This isn't really true. Governments can print money. And they can raise taxes (immediately upping their revenue). Those are their "assets". Much more reliable
by LatteLazy 5y ago
This isn't really true.
Governments can print money. And they can raise taxes (immediately upping their revenue). Those are their "assets". Much more reliable ones than the average business.
Now look at most businesses. What assets do they have? Second hand manufacturing equipment at best, basically scrap. And that's the companies that have at least some. What assets does Facebook have? A brand name is the main one, you can't resell that really... Lots of western companies are basically hollow.
I can't comment on the core point of the article, I'm just saying you're a lot safer with government debt than corporate...
- WalterBright 5y agoWhat's reliable is you'll get paid back with inflated dollars, dollars that the government borrowed again. And the national debt grows and grows ever larger... BTW, personally I don't invest in government bonds. They're a loser of an investment. Always remember that Roosevelt defaulted on the gold bonds.
- LatteLazy 5y agoI didn't even know gold bonds were a thing. I guess they're the ultimate inflation proof bond...