“Personally, I believe the US Taxpayer will repudiate the US Debt. Still, it’s better than holding stocks...same as treasuries.”
Thanks for your reply! I wish I understood it...Are you saying that taxpayers will avoid buying treasuries? And are you saying that savings bonds are better than stocks or treasuries?
No. I am saying that the taxpayer, at some point will refuse to pay the debt. Will in fact default.
The "new regime" could decide to pay all (extremely unlikely), a portion or none of the previous debt. That debt includes Treasuries, I-Bonds, Savings Bonds etc.
The most likely long-term scenario is the US Government (US Taxpayer) completely repudiates all debt.;..since there's not enough money in the whole friggin' world to ever pay it. And, eventually, when interest rates increase to 7-10% on the 10yr issue...10-12% on the 30yr issue...we won't even be able to afford the INTEREST on that debt.
Of course the above scenario assumes we continue to accumulate debt beyond the current $14trillion...a certain scenario.