Now that the debt limit fiasco has been settled and the President’s budget has been released, I’ve re-evaluated U.S. debt as an investment.
Although the President’s budget still causes long term growth of the U.S. Debt to GDP ratio, that growth is predicted to be sufficiently slow that I find it to be likely that investment in U.S. debt can be profitible. Furthermore, the rising interest rates and inflation protection of these U.S. debt securities could make them too profitible and secure to pass up.
Don’t get me wrong, the U.S. Budget is still on an unsustainable debt trajectory, as the CBO has warned. I’m just saying that it is a sufficiently long term issue that debt investing should reasonably be back on the table for now.
