upgrayed

Bond Expert: Friday Wrap

It's not a major feat to predict that the status quo won't hold forever, it never does.


On Jul 25 01:55 PM whidbey wrote:

> Selling debt during a deflation is easier than convincing the taxpayers
> that the spending is justified. The public is long run skeptical
> of current policy individuals will stop supporting the treasury sales
> and save the cash for personal uses.
> Institutions are more likely to play the game, but only at increased
> interest rates. This means stagflation in the bond market, and eventually
> economy wide. We are still using bonds in institutional portfolios,
> but precious metals will replace bonds at some point in the future.
> The Sales can only increase at ever higher rates.