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Author: BrianMotleyFool One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 71807  
Subject: Re: Venezuelan election October 7 Date: 10/4/2012 6:49 PM
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>> no politically conceivable combination of tax rises and spending cuts is going to be able to fix it. Default is inevitable on either issued debt, or promised benefits, or, most likely, both...

Brian:

It is solvable IMO.

If you have the opportunity, pick up a copy of EndGame by Mauldin.

It is not too late if we act now. <<

Maybe, just possibly, you are right. But tell me - are you willing to put your money where your mouth is? US Treasury debt is rated as AA+, one of the safest investments on the planet. Are you willing to buy Treasury securities? Do you feel the current interest offered on Treasuries compensates for the level of risk?

Judging from behaviour of investors around the world, the current interest rate and bond rating on US debt is a joke. More than 70% of Treasury debt is currently being bought by the Fed. No one else wants it.

Were it up to me, 10 year US debt would be rated around B, and 30 year debt would be junk.

Brian
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