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


To: ajtj99 who wrote (93911)2/8/2009 1:20:16 AM
From: John McCarthy  Read Replies (1) | Respond to of 116555
 
aj

If you would not mind - when you have the time -
would you answer this question::

Background
Ray Dalio is saying we (usa) want to devalue our currency.
(I think he is saying this)

Message 25394660

My question is:
If we do - in effect - devalue would the current market
value of EXISTING USA BONDS - go up or down?

IOW - if any country had bonds outstanding and then
devalued their currency which way would the bonds go - up
or down.

I am guessing they would immediately go down - to in
effect increase the market price interest rate yield
on them to compensate for the devaluation -

but I am NOT really sure if this would happen.

Interestingly, Ray D does not foresee inflation for
the next 24 months.

regards
John



To: ajtj99 who wrote (93911)2/8/2009 9:47:10 PM
From: benwood  Respond to of 116555
 
When that house is worth $600k in another year or two, the taxes will be 6-12% higher. Then maybe the taxes would look normal from the outside.