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“T-bills of course are risk-free” How are you so sure? If its because an American default is unimaginable, then that’s “presentism” - assuming that whats true
by AuInsect 5y ago
“T-bills of course are risk-free”
How are you so sure?
If its because an American default is unimaginable, then that’s “presentism” - assuming that whats true today will continue to be.
If its because the US could just print its obligations, than Id argue that the Tbills are not risk free since one would only get the nominal value back
- csomar 5y ago> If its because the US could just print its obligations, than Id argue that the Tbills are not risk free since one would only get the nominal value back Depends. The US could honor the T-bills owners at the expense of currency holders.