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Comment by proteal | Hacker News Reader

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Risk in this context means uncertainty - since the government can print money it is always able to pay its debts. You might not get a great return on your investment, but the government always has the capability to pay you back. There’s little reward with no risk.

I disagree.

When I lend 2022 dollars to the government, I give away a certain amount of buying power.

I don't know if I will get that buying power back when I get my 2032 dollars.

The government does not always have the capability to pay me back my buying power. It cannot create value at will. It can create money at will. But the more money it creates, the less value it has. So it cannot create value at will.

"Risk" in this context generally refers to default risk, not the chances that the opportunity cost of your T-bill'd money exceeds the return.

You don’t disagree, you just don’t understand basic financial terminology

Governments are not the only source of bonds. 10-year securities are not the only denomination.

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