Here’s a recent interview I did with my friend Taylor Schulte on the Stay Wealthy podcast. Like myself, Taylor is a financial advisor who fields a lot of questions about the national debt and the safety of investing in instruments like Treasury Bonds. In this interview we try to clear up some of the confusion and provide some objective perspective on how risky the national debt is. We discuss:
- Why the government balance sheet needs to be thought of differently from your household balance sheet.
- Why inflation, and not default, is the real risk for a national government’s debt.
- How risky is US government debt when compared to other bonds?
- How to think about bonds in a portfolio.
You can listen the full interview here.
I hope you learn something new.