bearfund

What’s Behind the Slide in Gold and Silver?

The surest bet in the game right now is short Treasuries. Supply is bloated and growing, demand is weak, yields are well below inflation, and the issuer has some real serious fundamental problems. 3%, I have to pay taxes on that pittance, and if interest rates rise (IF?!) I lose on a mark-to-market basis, too. Who'd want em? Oh, yeah...idiots. I'll give you two scenarios: (A) the US economy recovers quickly and the Fed raises rates to mop up all the excess liquidity. (B) the US economy goes in the tank and the US ends up in real trouble, with tax revenues plummeting, government expenses rising even further, inflation soaring, and the dollar in free fall. Now, in which scenario do your Treasuries rise? That's right: neither. Convince me that there's a third scenario and I'll listen. Until then, wanna buy some Treasuries?