strikethree

gjertsen Wrote:
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> The notion of the US "defaulting" on its debt
> seems a little absurd in the first place. There
> are tons of things which are likely to not be paid
> before treasury holders are not going to be paid.

The notion of the US eventually paying all of it's bills, or at least looking solvent without destroying the value of the $$ is what is absurd to me. To think that debt of the US carries the same rating as JNJ or XOM is a joke. Look at the balance sheet and cash flow of the US vs JNJ, XOM or other currencies. I should have moved to AUS when I had the chance 5 years ago.

In the short term I doubt we will have a "default" if we do the inevitability of the destruction of the $$ will accelerate. Just a slight interruption will tack on a minimum of a .5% risk premium on our bonds for forever.

The real question is what will the CFA test look like without the risk free asset? Or will they say bonds issued by China?