Thursday, 14 July 2011

Re the debt, who are the dummies: the US or Chinese government?

As far as I can see, the average yield on US government debt is now below inflation. So the US government makes a profit on its debt. This is particularly true of debt held by the Chinese, which, as I understand it, is mainly “one or two years to maturity” stuff.

So who are the dummies: the Chinese for making an investment which makes a loss, or the Americans for getting worried about making a profit?


No comments:

Post a Comment

Post a comment.