lorddarley

U.S. Dollar Strength and Implications for Gold

I think we are in for massive deflation. If inflation were even a remote possibility, the US treasury would be issuing long bonds at today's "low" rates.

The appetite for long bonds is enormous, due to pension liabilities. So why don't they issue them?

They don't issue the long bonds because they know there is no inflation in the future, and that interest rates will get even lower, and stay low.

It's a great privilege to sit on your backside and collect interest when you do nothing. Billions of people now have money, and would like to collect interest, and do nothing.

Surprise. People will be underemployed and interest rates will stay low for the forseeeable future.

LordDarley