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> US debt is extremely toxic, which isn't an obvious fact if you look at the surface only. Is it? Why do you think so? I’d say it’s the safest asset in the wo
by bjornsing 4y ago
> US debt is extremely toxic, which isn't an obvious fact if you look at the surface only.
Is it? Why do you think so?
I’d say it’s the safest asset in the world. Sure, if you buy a 10y US bond you risk having some of the value eaten by inflation. But that’s a relatively “soft” risk in that hyperinflation is unlikely. Default I think is extremely unlikely.
- grogers 4y agoUS treasuries are sometimes called "return-free risk". It seems pretty clear that the US government is borrowing unsustainably high amounts. We can't keep this pace of borrowing up for very long. So either the government starts being financially responsible (how likely do you think that is?), or by the time those 10y bonds mature you'll either get highly devalued dollars or just nothing at all.