SSB Vs T Bills

[BBCWatcher]

Why US bill still running even after their government changed a few times? You all think too much la...look at Japan, Korea, etc...any of their tbills not recognised after garmen changed?

The U.S. federal government has made good on all its debt obligations since its founding in the late 1700s. It even assumed responsibility for some U.S. Revolutionary War bonds that states (rebellious colonies) issued. There aren’t many sovereigns with such a long history of impeccable debt servicing.

There’s a clause in the U.S. Constitution that‘s never been tested (and hopefully never will be) that seems to disempower even Congress from defaulting, even if it went mad and attempted to do so. It’s pretty amazing, actually, that creditor protection was explicitly written into the U.S. Constitution in the late 1700s. Alexander Hamilton got a lot of things right.

 

[reddevil0728]

The U.S. federal government has made good on all its debt obligations since its founding in the late 1700s. It even assumed responsibility for some U.S. Revolutionary War bonds that states (rebellious colonies) issued. There aren’t many sovereigns with such a long history of impeccable debt servicing.

There’s a clause in the U.S. Constitution that‘s never been tested (and hopefully never will be) that seems to disempower even Congress from defaulting, even if it went mad and attempted to do so. It’s pretty amazing, actually, that creditor protection was explicitly written into the U.S. Constitution in the late 1700s. Alexander Hamilton got a lot of things right.

Haven’t doesn’t mean never.

also that poster didn’t realise it was in reply to sacarsm

 

[BBCWatcher]

Haven’t doesn’t mean never.

Of course not, but it seems a bit rich (to say the least) to have such doubts about that particular government but not another. There are several high quality sovereign debt issuers, and the U.S. Treasury is definitely one of them. And it’s helpful that the underlying currency (the U.S. dollar) is so darn useful. (I’ve used U.S. dollars to pay for stuff in some very strange places. Singapore dollars just wouldn’t have worked.)

 

[reddevil0728]

Of course not, but it seems a bit rich (to say the least) to have such doubts about that particular government but not another. There are several high quality sovereign debt issuers, and the U.S. Treasury is definitely one of them. And it’s helpful that the underlying currency (the U.S. dollar) is so darn useful. (I’ve used U.S. dollars to pay for stuff in some very strange places. Singapore dollars just wouldn’t have worked.)

I’m not sure how you managed to read there were doubts about one government over another.

can quote which part?

cause when read in context, I’m reading it as using examples of other countries to show that a change in government doesn’t impact honouring of debt obligations. Did you misunderstand?

and that poster didn’t realise other posts were meant to be sarcastic to discourage application of Tbill so as not to drag down yield and compete for allocation