Quote:
Originally Posted by UnderseaLcpl
Once again, you have confused me, Mark. Treasury bonds are hardly a better investment then savings bonds for the same reason; they're tied to the value of the currency, which is tied to the rate of inflation and the comparitive value of other currencies. Often, the interest rate doesn't outpace the rate of inflation or the comparitive devaluation of the dollar, making them poor investments.
From a macroeconomic standpoint, treasury notes are even worse because they rarely manage to purchase anything that is worth the cost of their production and the subsequent devaluation of the rest of the currency. You know the saying; "money doesn't grow on trees". I fail to see the investment potential in the long term on a personal or national level.
Don't take my word for it, though. There's a reason that major investors don't bother with treasury junk. The low ROI after taxation pretty much guarantees a negative retun.
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Treasuries are one of the most liquid investments in the world. They do not necessarily offer a "long duration" (ignoring what the word duration means in an investment sense) as T-bills can be as short as 30 days. And yes, major investors do bother with Treasuries. I should know.
And
Treasuries can be a fine investment on a total return basis.