Nikhil

Why Would Anyone Buy T-Bills at 0%?

guns gold and canned food.. interesting. I like the one in the middle the most


On Dec 10 01:11 PM Socialism cannot compete! wrote:

> Note the big rise in commodities and gold of late? We're looking
> at the "big investors" readying for "The Plunge of All Plunges" perhaps?
> Pulling everything outta stocks and into gold & Treasuries? Personally...I'm
> stocking up on guns, gold, & canned goods! Civil unrest ahead
> when it all comes down...and there are both economic and political
> events on the near horizon that will trigger it all. Scary but exciting
> -- real freedom may finally be on the horizon again.

Why Would Anyone Buy T-Bills at 0%?

a good question indeed, i think gold is a good answer. i am not a gold bug and have started looking at it recently. but this is precisely the reason why people hide in gold, where do they find a store of value. if others think the same they would come to gold later so some like to move in early - and there is a self fulfillinf prohecy. other substitutes: foreign currencies: banks can fail anywhere, and all major countries are facing downward pressrure, treasuries are ruled out, money market funds are suffering, real estate: i dare not touch, food: (perishable: i cant eat that fast; non-perishable, i doubt a pension fund manager would like 10 tonnes of sugar in his office), commodities - yes a good place , especially if you buy the long term story , in the short term one can def bleed there, what else.. nothing much .. do feel free to add to the list.


On Dec 10 11:42 AM Smarty_Pants wrote:

> Q: "Why Would Anyone Buy T-Bills at 0%?"
>
> A: Because you can't fit $100 Million under your mattress.
>
> OK, kidding aside, that's a very good question. The very good follow-up
> question would be "Where else can they put it?"
>
> Before anyone blurts out 'cash' please remember that any huge amount
> of money is difficult to convert to currency and if placed in a money
> market fund is probably going to be parked in commercial paper or
> right back into those treasuries.
>
> What's the short list of safe places to park large amounts of money
> these days where the real return isn't negative or where the risk
> isn't "too high"?
>
> It's a real head scratcher.

The American Crisis and the Case for an Inflationary Depression

i think you should read thru this.. www.federalreserve.gov...

there would be deflationary pressures in the short term but with a fiat currency system it can be taken care of easily.. and chances are one could overdo the fight against deflation..


On Dec 03 08:42 AM CLH wrote:

> You are delusionary. There is no possible way to make a deflation
> into inflation by magic. Print money? Not possible because no one
> will borrow it.
>
> This is a deflation (like Japan had) which is caused by the elimination
> of debt which causes the disappearance of money.

The American Crisis and the Case for an Inflationary Depression

nice article.. though dow at 3300 is too extreme for my apetite.. not that its impossible.. i tried accessing your fund www.gothamfund.org/.. doesnt work ?