The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Lee Lichterman III who wrote (37156)	7/28/2005 2:36:51 PM
From: futures speculator	Read Replies (1) of 110194

Good idea!!! I never understood why we decided to get rid of the 30 year just as rates were at their lowest in decades. Why not lock in low rates for the long term on our massive debt? Read my scenario: Reduce US avg debt duration to 4 years, half of it is very short term. US could engineer a big currency devaluation 30-50% of USD and pay this debt with sharply depreciated dollars. US will suffer a mild recession for a couple of years and start over. What makes some people think that nobody will lend to US anymore? Remember, nowadays, MOST OF THE CAPITAL is the hands of very few people (i.e. the rich got richer). Most of those people are US citizens. I'm sure many of them will still be parking it in Treasuries, regardless of what US does. Have you seen the borrowing rates of dotcom bankrupt corporations? How about Argentina? Poland just issued 50yr bonds a few weeks ago.

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