Monday, April 24, 2006
In numbers they trust
If the United States were a company, would you invest in it? What earnings multiple would you pay for "the leader of the free world?" Could it afford to cut you dividend cheques? Like publicly traded companies, the U.S. government issues securities—mainly Treasury bills and bonds. It issues dollars as well, and plenty of them. Like companies, it also publishes financial reports. I'm fairly sure that if you carefully studied the numbers and charts, you wouldn't invest.
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