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Subject:  Re: CD or treasury bill ? Date:  6/20/2006  12:55 AM
Author:  markr33 Number:  17175 of 36389

Obviously, I'm a huge fan of TreasuryDirect.

I've also been quite pleased with TD. I've also been surprised that a component of the Federal government can be so efficient and work so well. It is definitely the exception rather than the rule.

It's a shame that the government is borrowing the huge sums of money it is, and the interest rates we are being paid are, in some sense, coming out of our own pockets or our children's children's pockets.

Interestingly, I've been noticing that at least on th short-term issues, the new issues are smaller than the old ones they are refunding! Maybe our Federal government is moving more of the debt out longer (which is what I would advcate right now - long term fixed rate debt to be eaten up by inflation).

But there are good arguments to be made for having a country's borrowings come from the savings of its own citizens rather than foreign capital. That's straining the notion of patriotism a bit (or the notion of doing well by doing good). But I'd rather keep those dollars here in this country rather than pay them out to overseas investors.

Not necessarily. It depends on what else those dollars could be doing. If they can be invested in the economy at large and yield more than 5.X% consistently, then it is definitely better to allow foreigners to finance the debt, while we invest in our businesses at a higher overall yield.
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