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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (22975)2/6/2005 9:56:52 AM
From: Tommaso  Read Replies (1) | Respond to of 116555
 
If I HAD to buy treasuries, I would only do six-month T-Bills.

If there's inflation, the rates will eventally catch up, and if there were deflation, which I consider impossible, your purchasing power would go up.

I am afraid it's a great mistake to imagine that Japan's deflationary economy provides the model of what could happen in the United States. The United States is actively engaged in trying to remake as much of the world as it can in its own image and imagines that it has the power to do so, and continues to see itself as the richest and most powerful country in the world. Japanese have a much more modest view of themselves; the Japanese are the greatest savers on earth and Americans are the biggest spenders.

The United States is barreling down the road to dollar decline and commodity inflation.