Posted on 01/08/2009 7:27:03 PM PST by sickoflibs
"The bond market is the next to collapse. It's just another ponzi scheme as each buyer buys to sell until there are no buyers and it collapses"
"There is no safety in the bond market. The only buyers are speculators. It has all the dynamics of a bubble. When the federal reserve announced their intention to buy long term treasuries it sparked a speculative wave of buying, traders trying to get into the bond market to sell to the treasury. They are all speculators. No one is buying bonds with the intentions of holding them to security. Everyone is looking to get out". "There are no real buyers in this market, they are like condo flippers looking to sell to someone else". "When the last buyer is in and you start to sell, there's no buyers left. Unfortunately the last remaining buyer is going to be the fed. But the more bonds the fed buys, the less bonds are worth, because the fed in order to buy bonds, has to print money. And when you print money you debase the value of the dollar, so the more inflation the fed creates, the less attractive bonds become." "...all he has is a printing press... he can't do anything"
" No one will buy US government bonds because we can't pay anyone back. The way the US government operates is we borrow money, and when the interest payments are due, we borrow that, and when the principle comes due, we borrow that,it's just a big ponzi scheme. It depends on an ever increasing supply of people to loan us money, and hope there's even a bigger fool willing to loan us even more so we can get it back."
Add these to your favorites:
http://www.youtube.com/user/PeterSchiffChannel
and
http://www.youtube.com/user/PeterSchiffVideos
Canada ping.
Although it's about ready to blow up I'm sure I could make one heck of a deal on Yellowstone!
RE : Eventually you monetize the debt..:
What if Obama declared a financial crisis and suspended americans from selling dollars, and buying gold, like FDR? It’s an interesting possibility, not now, but when things get real bad,
Before you get turned into a totally politically correct metrosexual sissy as in the days of Lot, Sodom & Gamorah.
my parent’s recently moved their IRA’s completely into US Treasuries. Time to make a phone call.
Most of the treasury buying are the big banks parking their money there instead of lending—at least on the longer end. I don’t think it’s in that big of a bubble — at least until we add the probably $2 trillion in additional debt this year which is very likely at the moment. If you figure deflation of 1-3% this year, the “real” rate of return right now is 3.5-5.5% on the 10 year which isn’t too awful - especially when stocks can go down a lot lower and probably will.
Columbus (OH) is infested with gangs, even MS-13. We’ll be ready in the surrounding rural areas when the money bubble collapses.
Please, tell me it isn't so, Dorothy!
Well I’m not speculating. I’m buying to hold investment-quality corporates in solid companies that I’m familiar with, with rock solid balance sheets, that are industry leaders in promising or survivable industries. Amazing values were there last month even in consumer non-cyclicals, medical and environmental, if you can accept 9% yields for a 5-10 years and if you are open to a few early calls at 15% yield.
Their market value appreciated about 10% in the past month, and if we get another round of Dow 7500 they may depreciate back to lower bid. But since I’m holding to maturity, I’m hoping for that so I can shop some more.
my parent’s recently moved their IRA’s completely into US Treasuries. Time to make a phone call.
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Short term Treasuries are OK. My take is Schiff is wrong for a few years. This delation stiull has to play itself out. All I see is deflation right now
Schiff likes gold and projects hyper inflation very soon
The truth hurts. In this case, the pain is terminal.
Food. Guns. Ammo. Leave the cities. Thank God you’ve been warned.
That pretty much sums up what I hear an awful lot of people saying.
The only way to create inflation is to create a war.
Printing money has no effect on deflation. That money must be borrowed, and with high debt nobody can do so.
Those without money can't afford to borrow.
Those with money have no desire to borrow and buy assets that may fall in price.
It's called a liquidity trap because the money being printed by the Fed is TRAPPED.
is he saying that money...all money.....is worthless?.....
our money in the US is just as good....or as worthless..as everybody else's.....everybody else's economy stinks like ours.....
where is all the money?......isn't money similar to energy in that it can not be destroyed, only changed?
I am as doom and gloom as the next guy but SOMEBODY has the money....its out there isn't it?
they NEED us as much as we NEED them....
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