The U.S. is clearly in the next Great Leap Forward phase of government growth. Over the next two years at least, the excuses to tax, spend, borrow, regulate, confiscate and print will be head-spinning: Covid, recession, unemployment, student loan debt, college for all, climate change, green energy, systemic racism, wealth inequality, universal health care, universal basic income, not enough inflation, too much inflation, old wars, new wars, domestic terrorism, etc. The price tag for this statist fantasy won’t come cheap and those in charge will act as if the credit card has no limit.
Who in their right mind would loan money to such a profligate entity at any rate, much less 1.84% fixed for 30 years? U.S. Treasury bonds have one of the worst risk/reward characteristics of any investment I’ve seen in my 35-year career.
No comments:
Post a Comment