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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (37130)7/27/2005 4:01:50 PM
From: futures speculator  Respond to of 110194
 
what do you think will happen to long term treasuries in your printahon scenario?

It's very hard to say, because -again- we're not on a "honest money" gold-standard system.

The Fed could buy any bonds which are sold, so that the NOMINAL value of those bonds doesn't collapse. If not directly, then the Fed/ESF could do this via Carribean pirates/UK Isle on Man. Coincidentally, those two sources of funding are now #3 and #4 holders of US debt (behind Japan and China). Who knows what's really going on behind the scenes?

In that case, shorting ZB won't offer you any profits.

It's like all those poor folks shorting ES or R2K indices for being overvalued and losing their shirt for the last 3yr.