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March 23, 2010 / Hal (GT)

Go read: Government Versus Private Debt

This is a must read:

A recent Bloomberg article highlights how some highly respected corporations are paying a lower interest rate than the U.S. Government for short term debt. This is an interesting and rather unusual phenomenon for the United States. This implies that investors believe “top tier, safe” corporations like Berkshire Hathaway and Procter and Gamble are less likely to default than the U.S. Government!

Since the U.S. Government has the ability to get more cash by creating it out of thin air with the help of their central banksta friends at the non-federal, for-profit, unconstitutional federal reserve, this is saying a lot. I don’t know if this trend will persist or not. A bout of fear would most likely flip this relationship back to normal with the government rate being lower than any corporation. If not, we’re in bigger trouble than I thought.

via Gold Versus Paper: Government Versus Private Debt.


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