dieuwer

Investing in a Resource-Constrained World (Part III)

I hold my position that the only true and present bubble is in US Treasuries. Supply and demand have driven the price and thus the interest rates on these debt obligations to such levels that the fundamentals, i.e. current inflation do not warrant such prices/rates.
Even by the FEDs hedonic CPI measures, currently at about 4%, a US Treasury yielding 3% is a nonsensical investment. But we still see "flight to quality". Interesting to note is that whereas a lot of people talk about bubbles in commodities and such, noone is talking about a bubble in treasuries. Well baby, this one is ready to burst!