Yesterday after the U.S. markets closed, Standard & Poor's downgraded their credit rating on U.S. government bonds. Previously, the U.S. government had enjoyed for over 70 years the highest possible rating: AAA. Now it is "only" going to be AA+. We should note that the other two major bond-ratings agencies, Moody's and Fitch's still rate … Continue reading U.S. Government Debt Downgraded by S&P. What a Farce. And Non-Issue.
Government Bonds are Just Like Government Money
Government debt is not like private debt. Government debt, government bonds, are really just another form of the government-issued fiat money obligations - just like paper money. There really is little difference between government bonds and that paper money in your pocket - except that the bonds pay interest and are harder to cash at … Continue reading Government Bonds are Just Like Government Money