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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (32700)	7/1/2010 9:38:50 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

Re: "Look at the stampede now for U.S. treasury bonds (30 year) at a paltry 3.x%. In bubbles and panics, fear rules, and as an innocent bystander I have to say this has to be a U.S. Treasury bond bubble." Wayne, I believe you are EXACTLY CORRECT. Treasury bonds are in a massive bubble right now. Unless one thing happens... (and I'm afraid that we are currently right on the knife's edge of it happening! Inflation has practically completely vanished, is ONLY 0.6% right now on a trailing six month smoothed basis and is possibly lower still in current measures). We are teetering on the edge of national deflation and if DEFLATION emerges with strength and moves us into a DEBT/DEFLATION TRAP then those 'ridiculously over-priced Treasury Bonds' will be the right place to be, not inflationary assets....) Quite possibly that is the reason so many people have been rushing to buy bonds and kicking them into bubbliscious territory. See: "We are much nearer the tipping today. The M3 money supply has contracted by 5.5pc over the last year, and the pace is accelerating: the 'trimmed mean' index is now 0.6pc on a six-month basis, the lowest ever. America is one twist shy of a debt-deflation trap." RBS tells clients to prepare for 'monster' money-printing by the Federal Reserve As recovery starts to stall in the US and Europe with echoes of mid-1931, bond experts are once again dusting off a speech by Ben Bernanke given eight years ago as a freshman governor at the Federal Reserve. By Ambrose Evans-Pritchard, International Business Editor Published: 5:11PM BST 27 Jun 2010 telegraph.co.uk