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The view that Treasuries are safe is a misconception based on unwarranted faith in the government. The U.S. government, like the rest of the U.S. economy, is over-leveraged. But, unlike private individuals, the government has not cut back on spending. And, unlike private individuals, the government does not produce. This means that the government must take from the rest of society in order to support its spendthrift habits and repay its debt. Given that the Federal Reserve's expansionary monetary policy has wrecked the U.S. economy and the supposed growth over the last decade has turned out to be artificial, there really is not much wealth left for the government to take.
Today, the national debt amounts to more than $35,000 per American citizen. If one considers the U.S. government's unfunded liabilities (Social Security and Medicare), the number becomes unfathomable (over $300,000 per household over the next 75 years). Currently, the government rolls over its debt (i.e., uses new debt to pay back old debt), but once the world ceases to buy more federal debt (either because it runs out of capital or because it wises up to the U.S. government's Ponzi scheme), the government will be faced with two choices -- repudiate its debt or massively inflate the money supply. Neither of these bodes well for holders of government securities.
The economic implications of excessive government borrowing are grave. But the ethical implications of lending to the government are even graver. The purchase of government securities is an ethically questionable form of investment. Economist and historian Murray Rothbard points out the fundamental difference between private and public debt transactions:
"The government gets the money by tax-coercion; and the public creditors, far from being innocents, know full well that their proceeds will come out of that selfsame coercion. In short, public creditors are willing to hand over money to the government now in order to receive a share of tax loot in the future."