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Old   #3 (permalink)
Posts: 2,620
Default government bonds

A "bond" is a debt instrument, essentially working similar to a loan. You agree to give the entity, the government in this case, a fixed amount of money up front ands they agree to pay you interest over a fixed period of time. Savings bonds are the most prevalent. They are also considered to be the most secure type of bond since it is backed by the government, who pays it back because they have a the ability to tax the citizens.

I wouldn't buy them anymore for philosophical reasons; the government hasn't shown the ability to budget funds accordingly for a long time (completely non partisan statement as well) so its enabling them by purchasing them...unless they created a bond that went to specifically pay down the debt.
Awesome90 is offline   Reply With Quote