Timmothy Posey

Long Term Treasury Yields Likely to Rise, Pressuring Dollar Lower

Let's get for real here. The inflation that is coming will be double-digits, and yes, it is INTENDED. Inflation will be rampant, and it will be the saving grace for the Obama Administration, because they will be able to report higher personal income increases than ever before. The $30k a school teacher now makes will be $70k in the next few years.

They believe that inflation will solve our problems. E.g., it will lead to higher housing prices and spur demand back into housing, and it will inflate personal incomes and salaries all to the point where we can all afford our debt. This new "government" bubble will buy time for consumers and our government to dig out from their debt and then the next deflation/crash will (supposedly) relatively mild because more consumers will have a healthier balance sheet in which to re-inflate themselves. At least, that is the current administration's thinking.

Foreign Governments Dumping U.S. Assets

I used to be very bullish on TBT tripling this year but I've come back to the assessment that the Fed will do anything, including buying all the Treasuries themselves to keep yields low and also monetize the debt for the U.S. Government Budget. Will this involve some trickery and creating "money" out of thin air? Yes, but I still think they will do it.

Besides, TBT has horrible performance decay.