Ep #202 - T-Bills, I-Bonds, and Government Debt, Oh My!

Grow Money Business with Grant Bledsoe

This week’s episode of Grow Money Business is all about US government debt. We dive into this from the perspectives of investors, the government, and the citizens of the US. Join us as we discuss using T-Bills as an alternative to cash in your bank account, the purpose of an emergency fund, TIPS and I-bonds, the US dollar as the reserve currency, and more.

[05.38] Using Treasury bill – Grant starts the conversation by explaining how T-Bills work as an alternative to cash in your bank account.

[09.56] Emergency fund – Grant shares why you shouldn’t take too much from an emergency fund and lock it up over a long period of time.

[14.25] TIPS and I-Bonds – Grant explains why neither I-bonds nor Treasury Inflation-Protected Securities comprise a huge portion of all the US government debt.

[21.22] US federal debt – We discuss the current condition of US federal debt and what will happen in the future if this behavior continues.

[30.00] The reserve currency – US dollar is the reserve currency in the world. Grant shares what will happen if the status of the US dollar is threatened as the reserve currency.

Resources

treasurydirect.gov/

Treasury Inflation Protected Securities (TIPS)

treasurydirect.gov/marketable-securities/tips/

Federal Debt: Total Public Debt as Percent of Gross Domestic Product

fred.stlouisfed.org/series/gfdegdq188S

Debt-to-GDP Ratio: How High Is Too High? It Depends

stlouisfed.org/open-vault/2020/october/debt-gdp-ratio-how-high-too-high-it-depends