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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: LLCF who wrote (2085)6/4/2003 3:42:37 AM
From: EL KABONG!!!  Read Replies (2) | Respond to of 4904
 
dAK,

I took your reply to mean the long bond, regardless of whether or not it was US in origin and regardless of whether or not it was in a fund. My mistake... A thousand pardons effendi... <g>

But the point is that no one really has a solid answer to the question. Long bond, government fund, foreign debt... All have substantial risks in a deflationary economic environment, and I think the risks are quite different from the risks we might expect in a more normal mild inflationary economic environment.

I have often wondered if the US government would devalue the currency, and correspondingly devalue debt instruments, were we to find ourselves in a severe deflationary period.

KJC