On Wed, Nov 12, 2008 at 6:05 PM, Ray Saintonge saintonge@telus.net wrote:
Anthony wrote:
Where can you safely get 5% interest, anyway? The 30-year bond is around 4%. Long-term municipal bonds are around 5%, but they're not totally
safe
nowadays. And this is, as Gregory pointed out, before inflation. The chance that the US is going to start adding zeros to its dollar bills in
the
next 30-years is non-negligible.
It's about time that the US abandoned $1.00 and $2.00 bills and just used coins instead.
Given the current crisis, I wonder how (and if) that would affect interest rates, since bills are a liability of the federal reserve, but coins are not.