US Treasury's no longer default security?


Inquiring minds with money are wondering if it is time to begin looking for a new Universal Safe haven.

Consider Deborah Hoak’s fine article:

NEW YORK (MarketWatch) — For generations, holders of bonds issued by Uncle Sam have banked on the bedrock principle of the government’s “full faith and credit,” which had no peer among other nations.

Today, with a financial maelstrom saddling the United States and rival industrial powers with unprecedented debt obligations, even the monolithic dominance of Treasurys is in doubt.

“U.S. Treasurys are perhaps not the risk-free assets they once were,” said Michael Hasenstab, who manages the Templeton Global Bond Fund /quotes/comstock/10r!tpinx (TPINX 13.39, -0.08, -0.59%) . Countries that didn’t have the massive amounts of leverage and indebtedness before the recession “are coming out of this a lot quicker and without the overhang and inhibitors the U.S. is experiencing.”

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