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Originally Posted by Lenny2
No it's not safe to a degree, it's the absolute safest investment in the world period.
The U.S. Treasury's credit rating is the highest in the world. There is virtually zero credit risk for a U.S. government security.
That's why uncle sam can pay a lower interest rate than any other investment on the planet and still get all the money he needs.
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Why is a country which is deep in debt and continues to accquire $10 Bill of debts daily, is unable to produce any trade surplus since the 60's, and currently with a sinking currency value, - the "absolute safest investment in the world"?
This optimism is sure not shared by those in the US treasury or the rest of the world. There was a US treasury report released.. think spring of 2003. It was the most extensive report ever undertaken. The stats in that report were a horror story and, simplified, illustrated that 94% of all homes and the contents in them were the level of the national debt. Their "solution" was an immediate tax increase to 60% "for the forseeable future". Several years of uncontrolled monetary policy since that time has clearly made that situation worse.
It is unsustainable to continue borrowing and not paying for product purchased and, at the same time have little to offer in exports other than the only two remaining trade surpluses - wheat and arms.
There are plenty far more secure nations who are earning profits and do produce a balanced monetory policy than throw investment funds into the US.
That aside, there is no way on earth I'd be dumping money to waste in poor returns with any government.