Isn't it a greater risk to buy bonds when the government is in debt?
This is true of any financial asset, including stocks and real estate.
We know stocks and housing are artificially propped up by low interest rates dictated by central banks -- so they are over-valued, similar to government bonds that are over-valued when you look at the sheer amount of debt the government owes. (Bonds are propped up by public institutions in multiple ways, one of which is central bank buying with freshly printed money.) But people buy all these assets all the time.
Ultimately, buying these assets is a bet that the propping-up will succeed, at least until we sell the propped up asset.
The essence of the modern world system is that savers are robbed by having to gamble on whether financial asset manipulation by the elites will succeed during the time horizon under consideration. The elites are much better positioned to win in this game, and one of the reasons is that they have much more detailed information about the chances of these bets.
