Post
Topic
Board Economics
Re: Why do people keep buying bonds when the government is in debt?
by
Amph
on 20/06/2015, 07:34:24 UTC
Isn't it a greater risk to buy bonds when the government is in debt?

That depends on the nation, which is issuing the bonds. Some of the countries issue bonds which are having a very low risk of default, such as the United States. But these bonds usually have very low interest payments, like 3% per year. On the other hand, there are bonds issued by "risky" nations, which are having higher interest rates.

It's a ponzi

Default risk is 100%, it's just a matter of time.

There is no chance USA will pay his debts  Grin

they don't have to, as long as they keep creating toilet paper out of thin air, this how it works out there, and how it always worked, they do not want to change their perfectly scam strategy, until it keeps working good