re: #112 Obdicut

That’s an incredibly bad article. The NY Post is really not a good place to go for fiscal reporting.

A future rise in bond rates will not affect the current bonds owned by any retirees. The article writer seems really confused on this point— he directly asserts that principal falls when bond rates go up. This is completely false— once you’ve bought a bond, the principal can’t change.

I think what he misunderstood is that it’ll be very hard to sell any of the current low-rate bonds, if rates go up, since they won’t compare favorably. That doesn’t change the actual principal, though.

That article looks like a hack job written by someone who hates government spending.

Do you understand that the principal of a bond can’t be reduced once bought?

Not only hates government spending, but is too uninformed to make a good case against it. But I’m not surprised: The New York Post isn’t the Wall Street Journal and I can easily see the Post deliberately running an article known to be bad in order to make a big DERPy splash and scare its readers.