www.wcool.com | Mouth-Off Main PageThe US government has lost money for every quarter for over 15 years, has flat revenues, rising costs, and an enormous amount of debt financed on short term money.
In order to get their act together and avoid a financial crisis, organizations like IBM, GM, and the Soviet Government were all forced to lay off thousands of employees, bring in an outsider to lead, and have incurred massive restructuring costs. The US government has not yet had its massive restructuring and most likely will need a US treasury crisis to push it into action. There is no way that the US government will remain one of the only organizations in the world that does not have to go through a difficult period of financial constraint, downsizing, and decentralization. The US government has been moving in the right direction lately, but is moving far too slowly and timidly.
If a slick politician put his arm on your shoulder and said, "I have a sure-thing 100% guaranteed safe investment for you." What would you think? If the organization backing his "sure thing" depended on suckers giving him billions every week just to meet current cash flow requirements, what would you think? I hope that you would know that there is no such thing as a guarantee, especially from politicians.
The only sure thing about US Treasuries is that they are a disaster waiting to happen and you are a fool if you hold them.
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