Posted Jul 11, 2013 by Martin Armstrong
QUESTION: Are short term US bonds (not more tan 2 years) a safe place to be? Having cash is lethal if the bank goes under.
ANSWER: Yes. However, I would stay very short-term because rates will rise faster than most suspect. So try to stay in 1 year of less TBills. Keep in mind that debt is now currency that pays interest. Just stay short-term term. The US paper will be fine at least until 2016.