Is US flirting with default a reason to buy more international bonds?

[pb4uski]

I dumped Total Bond in favor of the Intermediate Investment Grade fund a few years ago as USG bond yields were too pathetic for my liking and I was willing to take the additional credit risk.

I have ~20% of my fixed income portfolio in International Bond. It has performed better than the Intermediate Investment Grade it replaced so far, but I've only owned it since early June so it is too soon to tell.

[Lsbcal]

Quote:

Originally Posted by Texas Proud ...(snip)... And life goes on at both locations.... and many people would say quite nicely.... Since I lived in London for a few years, I can tell you that the standard of living is higher than a lot of places here in the good ole USA...

Impressive comment coming from a Texan.

BTW, we have a lot more natural resources then the Romans or British ever had.

[karluk]

Quote:

Originally Posted by nun While the sun might still literally never set on the UK and it's colonies, in it's allegorical sense (which is more important in this case) it set a long time ago.

Interesting take. I would say just the opposite - the literal decline of the British Empire has been MUCH more rapid and profound than the allegorical decline. Geographically, Britain today consists of a medium size island off the coast of Europe plus some insignificant overseas territories that add practically nothing to either its size or economy. Economically, however, Britain today has a top ten GDP and top five stock market. Ask yourself where you would choose to live if you had to pick an island country anywhere in the world. Of the world's major islands, the only obvious choices are Japan and Britain. Places like Greenland, Madagascar and New Guinea don't offer quite the same quality of life.

The breakup of the British Empire was a political reorganization, not an economic decline.

[nun]

Quote:

Originally Posted by ERD50 Why not? -ERD50

Geography and natural resources.

[samclem]

Quote:

Originally Posted by karluk Of the world's major islands, the only obvious choices are Japan and Britain. Places like Greenland, Madagascar and New Guinea don't offer quite the same quality of life.

New Zealand? And although Australia is technically a continent, it's a one-nation continent. Like England, they speak a language I understand, so that would put 'em higher in my personal list of places I'd choose to live.

[nun]

Quote:

Originally Posted by karluk Interesting take. I would say just the opposite - the literal decline of the British Empire has been MUCH more rapid and profound than the allegorical decline. Geographically, Britain today consists of a medium size island off the coast of Europe plus some insignificant overseas territories that add practically nothing to either its size or economy. Economically, however, Britain today has a top ten GDP and top five stock market. Ask yourself where you would choose to live if you had to pick an island country anywhere in the world. Of the world's major islands, the only obvious choices are Japan and Britain. Places like Greenland, Madagascar and New Guinea don't offer quite the same quality of life. The breakup of the British Empire was a political reorganization, not an economic decline.

The "sun never setting" was used to describe the size and supposed longevity of the British Empire. It might still be literally true, but it;s not allegorically true as the political and economic power of the UK has obviously declined enormously from it's height. That is the fate of all great powers.

The UK is still a large economy, but it is slipping down the table, the decline continues, or maybe I should say other countries are improving at a greater rate. It's not a disaster for the UK. it's just the realities of today. Britain cannot enforce a trading empire through it's navy anymore and doesn't have the natural resources or territory to be a world power.

To be pedantic the island is Great Britain