Gregory Orr

Dollar's Stunning Drop, Ten-Year Treasuries' Huge Rally - What's Going on?

God, I miss Crazy Eddie. Yeah, the long bond at this price is insane. A taxable investment, tied to nothing but the treasury's ability to raise tax dollars from its loyal subjects, in a recession at best, having flushed the last of its ammo shooting cardboard Citi and AIG cutouts off the fence, when, by my calculations, the only way out for the US economy is massive infrastructure spending. Can anyone say, "Two Trillion Dollar Deficit"? The treasury can print all the money it wants, but still somebody has to show up at the auction and buy the bonds. China? Japan? OPEC, with $33 bbl oil? What about federal debt service as a % of GDP? What will happen if the only takers at next year's 200 days of treasury auctions decide that, relative to the yen or the euro, they won't take anything less than a 10% yield?


On Dec 21 02:01 PM Simmons wrote:

> Jim Rogers says that the Treasuries will be the last bubble to deflate.
>
>
> Let`s see.
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> jimrogers-investments....