Government Bonds and your Taxes and the difference between Bonds, Notes and Bills

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By thecounterpunch


Government bonds represent debts securities (contracts) from loans granted mostly by their Central Bank or by the World Bank or the IMF in the case of developped countries (see "Confessions of an Economic Hit Man" ).

They are "risk-free" because the government can raise taxes to pay the interests on the debts .

Government bonds, generally issued in national currency, can also be issued in foreign currencies and are then referred to as sovereign bonds.

Issues of mid-term Debts (less than 10 years but more than 1 year) are rather called notes by the US Treasury.

Issues of short-term Debts (less than 1 year) are rather called Bills by the US Treasury.

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WizeTrade profile image

WizeTrade  says:
5 months ago

I think it's interesting you're talking about this because government bonds are the safest bond investment you can make, because they're backed by the fdic. This is what I've been told atleast.

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