alt Hacker NewsCan. Won't. There is no safer place to stash money in the world. Nobody buys treasuries for the fun of it. They do it since that is the safest place to stash money long term.
Replies
chimprich • yesterday at 7:16 PM
> They do it since that is the safest place to stash money long term.
Only historically. The calculus is rapidly changing. If the US can't even respect sovereign territory of friendly countries, it doesn't inspire trust that they would repay debt.
sealeck • yesterday at 11:17 PM
The assumption that treasuries is safe depends upon the guarantor (the US government) being reliable. Currently this is ahistorically far from being the case and therefore people are investigating other places to park capital.
That's your opinion, which you are of course welcome to.
People buy treasuries because they expect a return. If a party is threatening to get into a shooting war with you your expectations of a return drop significantly. This then causes that party to protect their investment, the last one to defect will hold the bag. The US is signalling on all wavelengths that it is no longer the safest place to stash money, long term or otherwise.