Prudent Man CFA

Treasury Yields Will Continue to Rise

Think! What is a growth industry in the U.S. that cannot be replicated in other countries at a lower price? Ipods and wildly diversified cell phones and computers are nice but are not necessities and even these can be easily copied. The only growth industry I see is government, unless like in California, the taxpayers are tired of feeding that parasite.

Think again. Who is providing liquidity in the U.S. because our negative balance of trade is catching up with us? Foreign governments who now are pumping up their own domestic economies. Consequently, they have enough, if not too much, of our bonds which are denominated into depreciating dollars. Our Federal Government is ruining our economy with their Socialism and Industrial Policy that is rewarding their political (see GE) supporters at the expense of Free Enterprise. We depreciate the dollar to help our balance of trade and our interest rates explode and wipe out the middle class businesspeople who don't have a say in D.C.

Something must change and quickly. We need a Term Limited Congress so the citizen politicians stop this nonsense because they soon will have to live with the laws they create and programs that are breaking us.

It is pathetic that we have to analyze politics more today than financial statements, which also have been politicized by the FASB. This is not a good time to be a Free Enterpriser but many who wanted "change" didn't think that they would get blatant Socialism in 100 days. Evidently, they didn't research and think much about the government they elected because the agenda was there for everyone to see.

You snooze we all lose!

These are facts, not market momentum techs or theories. If you don't pay attention to fundamental facts you will be the last one in and get creamed.

Treasury Yields Will Continue to Rise

If you have to ask this question you certainly should not put your hard earned moneyin markets where you don't understand the risks and capable of losing money.

Saving isn't a bad idea. Profits are not an entitlement and, under our present Administration, Anti-American.


On May 23 08:39 AM BlueOkie wrote:

> So where is a investor to put his money?

Treasury Yields Will Continue to Rise

Inflation follows currency debasement. It is a hidden tax, which politicians love because they rightly know the voters and many academics wrongly believe a little (like cancer) is o.k. Furthermore, interest rates can just go up because of the demand for loans is great and our greedy, control-freaked-out government can only borrow so much and they have reached that limit.


On May 22 08:52 PM rockingandrolling wrote:

> Bond yields will respond to presumed inflation..... but, where is
> the inflation?? It may be somewhere on the horizon...but the horizon
> may be further that we can imagine. With the following currently
> going on:
>
> 15 million unemployeed/under employed.
> Housing market continuing to decline.
> Commercial real estate imploding.
> US auto and other manufacuring becoming obsolete.
> Credit markets continued deterioration.
> Deficits as far as the eye can see.
> Increased taxes to bail out county, state and locals gov. deficits.
>
>
> Everyone has less disposable income now and I don't see it changing
> anytime soon. If, prices for goods go up - who will buy? Right now
> most people are in no mood to buy. I can't see inflation anytime
> soon....niether can the Fed - that's why rates remain at 0%.
>
> True the Fed's are pumping money into the banks and favored areas....but
> so far it isn't trickling down. The banks have tightened credit,
> and the recently passed credit card restrictions will penalize most
> people, further reducing the use of credit cards and adding to the
> contraction of purchasing power. Therefore, I see no inflation anytime
> soon....
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