3 ms·
Are bonds issued by a dysfunctional government that is severely in debt in the middle of a couple of years of consistently tumultuous world events really “risk
by sudden_dystopia 4y ago
Are bonds issued by a dysfunctional government that is severely in debt in the middle of a couple of years of consistently tumultuous world events really “risk free” anymore though?
These bonds only match inflation as defined by the government via CPI. But there is a strong argument that real world inflation is significantly higher than CPI.
- prepend 4y agoThey’re as close to zero risk as you can get in the world. If the US government defaults on debt, then I bonds will be the least of our concerns. So this is sort of an “all eggs in a single basket” type situation as USG pays a zero risk premium.
- deleted 4y ago[deleted]