Monday, March 21, 2011

DeLong says we are looking for safe assets

He always goes back to the idea that there are safe assets in the world to hold our savings. This is portfolio advice, where to safe harbor your extra cash. OK, fools, one and all, I look for safe harbors:

1) Gold
2) German bonds
3) Australian commodities

I would put US Treasuries on the list, but I am not sure we are getting back to 19% revenue share for Congress, hence there is the fear of the unknown as the federal government restructures.

So, DeLong has to help us out here. We have a Fed that is floundering a bit, a Senate on a three week scheduling cycle, and the major funding states for Congress are nearly bankrupt with high unemployment. Maybe Brad knows something about federal government that I do not, after all he studies it a little more. But he is ultimately asking us to invest in the US federal government based on his knowledge of history.

How do we know Brad is right? What if my proposal takes off; the idea of breaking up the US and partialing out a fairer democracy. Do you trust secessionists to safeguard Congressional debt during the breakup?

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