Burticus

Bond Investors Beware - Don't Underestimate Current (Escalating) Risks

To answer 538559's question:

Treasury bonds are issued to finance unlimited spending by a bankrupt federal government run by incompetent Marxists puppeteered by a criminal syndicate that can print the "money" to buy them when there are not enough clueless morons willing to throw away their savings.

Municipal bonds are issued to finance unlimited spending by bankrupt state and local governments run by incompetent, corrupt Marxists who do not have direct access to "money" created out of thin air and purchased by clueless morons willing to throw away their savings. The laughable amount of interest on 'em is not subject to federal income tax and the massive losses of principal can be offset against other capital gains and otherwise deducted up to 3,000 FeRNs a year for eternity.

Bonds are now the biggest bubble in the history of the planet and will be vaporized by sovereign defaults, central bank monetization and resultant hyper-inflation as the panic stampede from debt paper inevitably occurs. Physical gold and silver investments will be the only things left standing among the crispy critters in the twisted smoking financial wreckage.

Disclosure: Long physical silver, gold, steel, lead, food and rope.

International Long-Term Interest Rates

Japan actually produces and saves. U.S. mostly borrows and consumes, while running massive budget and trade deficits. This will be the important distinction between members of the 1% club and investors' perceptions of long-term counter-party default, interest rate and currency risk.

These interest rates are more evidence that there is no free enterprise economics anywhere in the world any more. Only fascism, socialism and communism under oligarchies - varying degrees of gubmint control of all capital, as directed by the ruling elite. We were warned:

History records that the money changers have used every form of abuse, intrigue, deceit and violent means possible to maintain their control of governments by controlling the money and its issuance. - James Madison.

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt. - Henry Ford