CNBC interview on bonds (sick with minor flu, but can think)
Hornbarger of AG Edwards
he is bearish on TBonds, and lists reasons why
they are very consistent with my views, thus he is a sharp guy
- Fed reflation efforts are expanding money supply, which is eventually price inflationary (and by definition extremely inflationary)
- USGovt tax cut is stimulative to some degree, and will enable spending and price supports
- USGovt federal deficits are huge and growing, which must be funded either by monetization at the Fed or by foreign funds
- commodity prices are in an uptrend, signaling higher costs across the entire economic spectrum
- the USDollar is weakening badly, signaling higher import prices and commodity prices
- gold is rising, a general systemic signal of distress in the paper-based securities and imminent price inflation
- US Economy GDP growth could see 2ndHalf growth
- Fed interest rates are below the CPI inflation rate, offering negative real interest rates to savers
- the Treasury yield curve is steep, which refutes any claim that DEFLATION is a threat (just the opposite, with INFLATION the clear and present threat)
Hornbarger expects current TENyr TNote yield to rise from the current 3.4% to 4.8% in the next 12-18 months
if this occurs, serious damage to the bond market will take place
a breakdown in the bond market will catapult gold into the 2nd and 3rd stages
a good interview, which I took notes from
he was belittled by the obnoxious haughty arrogant painintheass Mark Haines, who is a smug asshole
Haines said that bond bears have been wrong for a year
apparently Haines blames bond bears when the Fed is desperately pushing down interest rates in a very destructive fashion
lower bond yields and higher principal prices are a signal of utter desperation by our Fed, which so far has seen massive damage to our currency
the Fed has now decided to fight the effects of monetary inflation with more monetary inflation
they see the deflation threat as treatable with more money, when the effects of their policies have created huge overcapacity and indebted consumer demand
GreenScheiss must believe that more overcapacity and more indebted consumer demand will fix his oversupply of money to the economy for 15 years
GreenShitHead will go down in history with a photo next to Herbert Hoover for his destructive policies and career
/ jim |
