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arinrye's avatar

Excellent summation. I bought a lot of TLT and long Treasurys, years ago, when I was putting together a "Permanent Portfolio" a la Harry Browne. Now I am replacing them with highly rated corporate bonds, because I think there is something inherently dishonest about a bond that is as long as 30 years, especially a government bond. The only way these are "risk-free" is because the government is planning on collecting taxes from producers, with which to pay you back, in 30 years- so they are depending on the producers that they are effectively mugging. (Yes, I came to this conclusion after a re-read of Atlas Shrugged).

A bank CD (which seems like effectively a "bond" issued from a bank?) almost always has a duration of 10 years or less, and a corporate bond (without government backing) is rarely more than 20 years, often shorter. Also, a corporate bond is issued by an entity that is actually productive themselves- instead of just stealing from productive people like government bonds!

Anyway, I would be curious to hear your thoughts on this, Jim- if this makes sense or I am missing something.

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Anders Ingemarson's avatar

Hi Jim,

Good article as always although I don't have as favorable a view of Scott Bessent as you seem to have (or have had?) What is your view of corporate bonds/bond funds/ETFs (short, intermediate, long, mix) as an alternative to T-bills?

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