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US Government Paper Will Be Safe At Least until 2016

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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.