Treasuries entirely. Too bad more people don't get this simple understanding of economies run on fiat money. The Govt will never default -- it only has debt denominated in its own fiat currency! Why is that so hard to understand? All these Washington shenanigans just detract from the most important task at hand -- to direct the resources, esp labor, in the most productive fashion to enhance the productivity of the same. The only factor of import in the nation's quality of life! Simple? Not quite! Warren -- I picked up a copy at the New Haven Tea Party. I just finished my first reading. Really interesting -- I have never read a perspective so totally different than anything else out there. Very much appreciated. You've asked me to question my assumptions. You state that a Federal "deficit" is not bad because a deficit is exactly equal to what private investors have invested. And I agree with that premise. But doesn't the "deficit" also include what foreign individuals and institutions have invested? That is, a national deficit could be high, and that nation's savings be low? (And if so, does this even matter?) But more importantly, these "savings" account investors have with the Federal Reserve, this money lent to government (instead of being spent), well aren't large deficits still a problem as that is money that the government has to use and not individuals and business. Isn't there an opportunity cost problem? Doesn't a problem exist in that the private