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From: -hh <recscuba_google@huntzinger.com>
Newsgroups: alt.fan.rush-limbaugh,can.politics,alt.politics.trump,alt.politics.liberalism,alt.politics.democrats,alt.politics.usa.republican
Subject: Re: LOL... Moronic 4 Year Old Thinks We're Still On The
Date: Wed, 15 Oct 2025 22:15:15 +0200
Organization: A noiseless patient Spider

Governor Swill <governor.swill@gmail.com> wrote:
> On Tue, 14 Oct 2025 08:43:28 GMT, Jan Panteltje  wrote:
> 
>> But WHY should a country buy US debt when they can get 
>> much better return on buying gold, or some other currency 
>> than inflating dollars?
> 
> Because US debt profits are more reliable.  

Traditionally, sure.  But today?  Well, the USD is already down -10% YTD.  

> The interest is stated in
> advance and rises in direct correlation to inflation.

For foreign buyers, the return needs to cover inflation + currency
fluctuation risks too. In the current YTD environment, that would mean a
rate higher than 13% just to maintain a position’s value.


> It's worth noting that in the aftermath of Bush's Great Recession,
> nations and institutions were still buying treasuries even though the
> interest rate offered was 0%.  Why?  Because US treasuries were the
> safest place to keep your money.  Earnings and yield became irrelevant
> against safety.

To a degree. Negative rates didn’t last all that long.


> Gold, like most other investments, has no guaranteed yield and can, in
> fact, become worth less than you bought it for faster than you can
> unload it.

Of course it “can”.  However, the instability & devaluation of the USD has
resulted in gold increasing in value (vs the USD) by over +50% YTD and over
100% in the past five (5) years.

-hh