Quote:
Originally Posted by JB3
I agree, its nice to be above it all.
Unfortunately for some of us, the spiralling national debt is something to worry about. I have money worked long and hard for invested in government bonds. If the us government defaults, I'm a person who loses their money, so Its harder for me to poke fun at the situation with the standard sarcasm you so enjoy.
Still, I guess its one way to deal with the situation
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It's what happened to Soviet citizens when the USSR collapsed. Their pension didn't change though prices rose to equilibrate with international prices. Or the Argentinians during the junta saw their savings evaporate with run-away inflation that changed the value of the peso hourly.
It will happen here with retirees such as you and I paying for it. Let's say we have carefully saved for retirement and have a million bucks in gov bonds. Inflation increases to 10% while our bonds appreciate at 1%. We bleed to death slowly. Then the gov decides, due to inflation, to devalue the currency 10%. We still have a million but now it's worth 900k.