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Tag Archives: T-Bills

Paying off the Debt Commentary

John Lothian

One of the sound bites that I hear, including from people like the caustic ex-patriot Jim Rogers, is that the US will never be able to pay off its debt. They never should pay it all off. It would be nice for them to be able to get back to the place where they are not creating more or as much debt, but first things first. The debt of the United States, backed by the taxing powers of the strongest economy in the world, is something that has been around since the start of the republic. It is something that…

Too Big To Fail Commentary,Regulation

John Lothian

The debate in Washington, DC about raising the debt limit has the potential to change the way the world looks at risk.  While there are all kinds of risk, one bedrock of an assumption has been that US government T-Bills are a risk free investment.  You will always get your money back, even if as a last resort the government has to print it to give it to you.  The US government will never default on its debt, is the belief and promise. Most importantly, US T-Bills and other US government debt are backed by the full faith and credit…