Risk Free?

July 10, 2006

What about government bonds? You know – diversify your portfolio and all, they’re widely considered to be risk free, at least in industrialized, well developed countries. Risk free? hehehe, I’ll sell you some time-shares in the Everglades, if you’re interested.

…think about it for a minute: Because governments produce nothing but bureaucracy – at least nothing that is voluntarily financed entirely by those supporters – your “risk” is underwritten by the barrel of a gun. I hope you can sleep at night. You are purchasing a security instrument that is financed – basically by the government’s power to steal from those whom it governs – this can be done outright, by taxation, or more indirectly, by inflating the money supply.

On the other hand, you get to contribute to the production of largely wasteful central planning boondoggles, and your “investment” will be paid back by various income redistribution schemes.

Charming.