[PGR88]

In Germany, I once saw a room wall-papered with Weimar bonds.

At a night market in Taipei I visited 25 years ago, you could buy as souvenirs stacks of Republic of China Govt Railroad bonds.

Govts overspend and go bust, and yet life goes one.

[CholeraJoe]

1 yr T-bills are offering a quarter of a percent interest and 5 year notes are paying 1 1/4%. The Chinese are looking for something that pays better. I just had a CD mature and my local bank declined to renew it. The bank isn’t lending, so they have no need to borrow.

[GonzoGOP]

In the interim, the market value of those bonds may rise and fall. But they won’t double, and they won’t go to zero.

In a run away inflationary market the bond may not go to zero, but it will go to half. The extravagant promise the government is making is that there will not be inflation. It is a promise they can not possibly keep given Obama's spending.