U.S. treasuries are so safe --- there wont be a reduction in confidence

(Richard, PhD from Princeton University “The Specter of Default: How Safe Are U.S. Treasuries?,” pg online @ https://knowledge.wharton.upenn.edu/article/the-specter-of-default-how-safe-are-u-s-treasuries/ //um-ef)

Borrowers who get in over their heads typically find loans harder and harder to get, and are generally forced to pay ever-higher interest rates as lenders worry about potential default. But U.S. Treasuries operate in a world of their own. Because the government stands behind them with its taxing power, investors consider Treasuries to be very safe — virtually the only type of bond that is free of default risk. (Like other bonds, Treasury prices can rise and fall as they are traded. Prices, for instance, fall when investors perceive a greater risk of inflation, which undermines the value of fixed-interest earnings. Prices of existing bonds can also fall when a rise in prevailing interest rates makes older bonds with low yields less desirable than new bonds with higher yields. The term “riskless” refers only to default risk, not interest or inflation risk.)