Downward spiral in treasuries. There will be a race to the exit. Everybody knows that our federal government will not pay back lenders. The only question is when we default, not if.
We won’t default. And bondholders won’t pull the plug on us either.
We can and will continue to print (devalue). The plan is to slowly inflate our way out. It will work, but how well it will work is still in doubt. It’s a tightrope act. Other currencies have a vote, but we have the big vote, due to our size compared to theirs.
The Euro was created to destroy the dollar, but that won’t work either. The Euro will destroy Europe first. China is about to head into demographic problems that will be much worse than ours.
Japan is about to come out of its demographic-caused depression and may have a decent future under these conditions.
We will all lose another 40% or so of our wealth during this process.
Some who guess right at the right times will lose less, and some will lose more. Like always.
I’m not taking a position of good or bad on this as that is meaningless. As always, the proper reaction to FED/govt fiscal policy is what matters, not whether the policy is “good” or “bad” as that is irrelevant.
You can curse the weather, but in the end only answer is to dress for it.