But there is also a chance that they could rely on a new form of bond — an “R bond” - as the basic building block for the auto-IRA, Mr. Iwry said in addressing reporters at the Treasury Department in Washington last week.
Why the need to create R bonds when Treasuries exist? Moreover, why do Americans need retirement annuities when social security already exists? Why create redundant markets and programs...unless...something jeopardizes their existence.
If it looks like something is wrong, something probably is wrong.
This is why the action or technical war in the bond market is so important. A technical breach in long bonds could unleash a wave of selling, a systemic shock, let's not call it default, that will carry broad economic and social consequences. Clearly, those in charge are aware of the burgeoning risks.
Source: pionline.com
Source: brookings.edu
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