2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 362.32

-1.8%

Nov 4 4:00 PM EST

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To: ggersh who wrote (125441)	11/30/2016 12:13:57 AM
From: John Pitera	1 Recommendation Recommended By ggersh Read Replies (2) of 217542

Hi ggresh, a number of good questions and interesting points. Why 100 year bonds.... an obvious reason to issue is that you think that rates are low... why to buy..... one is that you have participants looking for yield. Back in 1988, a German gentleman who was running Chase's Long dated FX book was asking/telling me about how a company ( I believe it was Seagram's....the Bronfman family company) was issuing 100 year bonds... .. he was saying why would anyone buy a 100 year bond.... he pondered that it was to avoid income taxes or to obscure where income had come from. when you create a market for longer term bonds you can then create products and derivatives off of them. Also, let's say rates rise for 3 years to 7% on a 100 year bond and then will fall significantly, and in a fast fashion ( market crash... pick your reason) the long duration of a 97 year bond is going to make it appreciate more dramatically.... than a 30 year bond.... you get more leverage, so to speak without creating synthetic leverage which occurs in futures, ETF 2X and 3X funds and that can have benefits. Also they are supercharged to fall dramatically in price in a rising rate environment.... and it is a direct US Government obligation... no CBOT or CME or other parties involved to muck up the process or create more systemic risk. people loose faith in paper currencies and in central banks ability to control markets.... it happens many times in history... and it will happen again. Message 30866407 The US Dictator Wouldn't Confiscate Your Gold, Right? I mean there would have to be a law or something and it would have to be run by the Supreme Court, right? No way by executive order right? JP

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