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

To: Crimson Ghost who wrote (39756)	8/25/2005 3:09:06 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

I think you misread the bond market. It is not predicting low inflation as the conventional wisdom would have it. It just has "higher priorities" like keeping the myriad bubbles intact as long as possible. And lot of CB buyers who care not one whit about getting a decent return on their investment. Inflation is basically irrelevant to the bond market today IMHO I do not think the US treasury market can be manipulated over the long term as you suggest. I believe conventional wisdom is that it is being manipulated by Japan, China, mysterious forces in the Caribbean, and by Patron's great aunt Martha. I disagree with that conventional wisdom. You also are aware of my views that demand in the US for treasuries will pick up if and when foreign central bank demand drops. So far anyway, every time foreign demand dropped, it has not mattered and auctions went off reasonably well. I really do not think it is possible to manipulate the long term trend for more than a short period of time. Mish