Heck . Could be. The last-ditch effort to save bonds? So far, they are
fighting mightily to save everything - bonds, stocks, the dollar, and against
gold. They are doing it with freshly printed, shining dollars. I think at least
one of the battles has to be lost. I expect it to be the buck. Stocks? no clue
there. Initial reaction "should" be down, but with the lunatics steering the
ship, you never know. We may just wind up with a hyperinflation, when
everything goes up (in the dollar terms), while the buck is adding 5-10
zeroes. This is a nightmare, but that's where the forever-printing Fed is
steering us. Nope, I won't be buying bonds. Won't short them, either, but...
4% rates on 10-year treasuries are just not good enough when the
currency is adding zeroes. I don't think we'll get there this year or next,
but we'll be firmly on that path, unless the Fed starts raising, and you know
it won't. I think real inflation might hit double-digits in 2004, in the 20-30%
range. Then again, the reported numbers will show deflation. -g-
Then, in 2005-2006, we might have the beast unleashed.
Hyperinflation means 2-3% price rise per hour. Sad, indeed. But this Fed
is nuts. It does not care about the fate of the currency, and neither does
the government, which is pissing off foreign creditors with trade wars. |
