Re:How This Ends
by sumofproducts on Sunday May 22, 2022 @01:38PM
(#31470711)
"Risk" in this context generally refers to default risk, not the chances that the opportunity cost of your T-bill'd money exceeds the return.
You don’t disagree, you just don’t understand basic financial terminology
Re:How This Ends
by quintushoratius on Sunday May 22, 2022 @01:17PM
(#31470481)
Governments are not the only source of bonds. 10-year securities are not the only denomination.
When I lend 2022 dollars to the government, I give away a certain amount of buying power.
I don't know if I will get that buying power back when I get my 2032 dollars.
The government does not always have the capability to pay me back my buying power. It cannot create value at will. It can create money at will. But the more money it creates, the less value it has. So it cannot create value at will.