Old Forum topic deserves re-visit: bubble in treasuries

[kewp]

[quote=patientrenter]Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

Am I missing something here?[/quote]

You are missing that our currency is based on debt and all the ‘inflation’ of the past decade was via borrowed money.

So those inflated assets have to deflate as they are either sold of or defaulted on to service the same debt that was used to purchase them with. Or the debt itself is defaulted on and the banks get stingy and refuse to lend out money for further inflation.

The Fed is pushing on a string. They can print new money but they can’t force what lenders/borrowers do with it. And apparently the lenders are just buying treasuries (which should surprise no one).

It boggles my mind that this is so hard for people to understand. Debt deflation is the natural result of a credit bubble. It is unavoidable.

Japan is different in a very fundamental way as they tend to honor their debts more. There are many Japanese that are servicing mortgages for properties that are only worth a fraction of what they paid for them. Its part of their culture.

That won’t happen here so the correction should be much swifter. Look at the recent news that over 50% of loan mods fail. Of course they do, as you can’t force someone to pay more for an asset than what its worth if they don’t have to. They will just walk away.

The only alternative to this is hyperinflation, where the government just gives people cash right from the printing press. Thank God this hasn’t happened yet, but who know what the future may bring.

[Rich Toscano]

[quote=patientrenter]Am I missing something here?[/quote]

No, in my opinion you are not missing a thing. In a fiat currency regime, inflation vs. deflation is a policy choice. It doesn’t need to be any more complicated than that.

rich

[Rich Toscano]

[quote=patientrenter]Am I missing something here?[/quote]

No, in my opinion you are not missing a thing. In a fiat currency regime, inflation vs. deflation is a policy choice. It doesn’t need to be any more complicated than that.

rich

[Rich Toscano]

[quote=patientrenter]Am I missing something here?[/quote]

No, in my opinion you are not missing a thing. In a fiat currency regime, inflation vs. deflation is a policy choice. It doesn’t need to be any more complicated than that.

rich

[Rich Toscano]

[quote=patientrenter]Am I missing something here?[/quote]

No, in my opinion you are not missing a thing. In a fiat currency regime, inflation vs. deflation is a policy choice. It doesn’t need to be any more complicated than that.

rich

[Rich Toscano]

[quote=patientrenter]Am I missing something here?[/quote]

No, in my opinion you are not missing a thing. In a fiat currency regime, inflation vs. deflation is a policy choice. It doesn’t need to be any more complicated than that.

rich

[stockstradr]

Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

You may want to read this article, portions of which seems consistent to Rich’s comment above

http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices

Frankly, I don’t have the experience in the financial industry or related degree that would allow me to analyze the accuracy/logic of that article point-by-point. I just don’t know the topic well enough

Yet, much of this opinion piece seems to ring true. The writer at least gives impression he knows the subject well.

Regarding Bernanke’s views on deflation versus inflation we have this excerpt:

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.

These are the kind of articles I look for when trying to figure out how to invest next, same for these similar articles below that discuss the major economic themes and expected market inflection points that will dominate our financial markets for the next decade, and beyond.

Jim Rogers is one of the best market traders out there. He started the Quantum fund with Soros, one of the most successful hedge funds of all time. Jim is also frequently interviewed on both Bloomberg and CNCBC. Rogers, and of course Soros, are both legendary. I view Jim Rogers as a financial genius, and a true American hero (for his courage to speak the truth in very public forums about the lies and conspiracies, and idiocy of our government officials)

http://jutiagroup.com/2008/08/19/exclusive-interview-jim-rogers-predicts-bigger-financial-shocks-loom-fueling-a-malaise-that-may-last-for-years/

More Jim Rogers:
http://sufiy.blogspot.com/2008/11/jim-rogers-says-dollar-to-be-devalued.html

The great bond market crash of 2009:
http://prudentbear.com/index.php/commentary/bearslair?art_id=10150

Also this interview (search for the link to the mp3) of Hugh Hendry is great stuff:

http://commoditywatch.podbean.com/2008/11/01/hugh-hendry-of-eclectica-and-dr-francis-claessens-of-peers/

[stockstradr]

Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

You may want to read this article, portions of which seems consistent to Rich’s comment above

http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices

Frankly, I don’t have the experience in the financial industry or related degree that would allow me to analyze the accuracy/logic of that article point-by-point. I just don’t know the topic well enough

Yet, much of this opinion piece seems to ring true. The writer at least gives impression he knows the subject well.

Regarding Bernanke’s views on deflation versus inflation we have this excerpt:

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.

These are the kind of articles I look for when trying to figure out how to invest next, same for these similar articles below that discuss the major economic themes and expected market inflection points that will dominate our financial markets for the next decade, and beyond.

Jim Rogers is one of the best market traders out there. He started the Quantum fund with Soros, one of the most successful hedge funds of all time. Jim is also frequently interviewed on both Bloomberg and CNCBC. Rogers, and of course Soros, are both legendary. I view Jim Rogers as a financial genius, and a true American hero (for his courage to speak the truth in very public forums about the lies and conspiracies, and idiocy of our government officials)

http://jutiagroup.com/2008/08/19/exclusive-interview-jim-rogers-predicts-bigger-financial-shocks-loom-fueling-a-malaise-that-may-last-for-years/

More Jim Rogers:
http://sufiy.blogspot.com/2008/11/jim-rogers-says-dollar-to-be-devalued.html

The great bond market crash of 2009:
http://prudentbear.com/index.php/commentary/bearslair?art_id=10150

Also this interview (search for the link to the mp3) of Hugh Hendry is great stuff:

http://commoditywatch.podbean.com/2008/11/01/hugh-hendry-of-eclectica-and-dr-francis-claessens-of-peers/

[stockstradr]

Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

You may want to read this article, portions of which seems consistent to Rich’s comment above

http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices

Frankly, I don’t have the experience in the financial industry or related degree that would allow me to analyze the accuracy/logic of that article point-by-point. I just don’t know the topic well enough

Yet, much of this opinion piece seems to ring true. The writer at least gives impression he knows the subject well.

Regarding Bernanke’s views on deflation versus inflation we have this excerpt:

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.

These are the kind of articles I look for when trying to figure out how to invest next, same for these similar articles below that discuss the major economic themes and expected market inflection points that will dominate our financial markets for the next decade, and beyond.

Jim Rogers is one of the best market traders out there. He started the Quantum fund with Soros, one of the most successful hedge funds of all time. Jim is also frequently interviewed on both Bloomberg and CNCBC. Rogers, and of course Soros, are both legendary. I view Jim Rogers as a financial genius, and a true American hero (for his courage to speak the truth in very public forums about the lies and conspiracies, and idiocy of our government officials)

http://jutiagroup.com/2008/08/19/exclusive-interview-jim-rogers-predicts-bigger-financial-shocks-loom-fueling-a-malaise-that-may-last-for-years/

More Jim Rogers:
http://sufiy.blogspot.com/2008/11/jim-rogers-says-dollar-to-be-devalued.html

The great bond market crash of 2009:
http://prudentbear.com/index.php/commentary/bearslair?art_id=10150

Also this interview (search for the link to the mp3) of Hugh Hendry is great stuff:

http://commoditywatch.podbean.com/2008/11/01/hugh-hendry-of-eclectica-and-dr-francis-claessens-of-peers/

[stockstradr]

Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

You may want to read this article, portions of which seems consistent to Rich’s comment above

http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices

Frankly, I don’t have the experience in the financial industry or related degree that would allow me to analyze the accuracy/logic of that article point-by-point. I just don’t know the topic well enough

Yet, much of this opinion piece seems to ring true. The writer at least gives impression he knows the subject well.

Regarding Bernanke’s views on deflation versus inflation we have this excerpt:

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.

These are the kind of articles I look for when trying to figure out how to invest next, same for these similar articles below that discuss the major economic themes and expected market inflection points that will dominate our financial markets for the next decade, and beyond.

Jim Rogers is one of the best market traders out there. He started the Quantum fund with Soros, one of the most successful hedge funds of all time. Jim is also frequently interviewed on both Bloomberg and CNCBC. Rogers, and of course Soros, are both legendary. I view Jim Rogers as a financial genius, and a true American hero (for his courage to speak the truth in very public forums about the lies and conspiracies, and idiocy of our government officials)

http://jutiagroup.com/2008/08/19/exclusive-interview-jim-rogers-predicts-bigger-financial-shocks-loom-fueling-a-malaise-that-may-last-for-years/

More Jim Rogers:
http://sufiy.blogspot.com/2008/11/jim-rogers-says-dollar-to-be-devalued.html

The great bond market crash of 2009:
http://prudentbear.com/index.php/commentary/bearslair?art_id=10150

Also this interview (search for the link to the mp3) of Hugh Hendry is great stuff:

http://commoditywatch.podbean.com/2008/11/01/hugh-hendry-of-eclectica-and-dr-francis-claessens-of-peers/

[stockstradr]

Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?

You may want to read this article, portions of which seems consistent to Rich’s comment above

http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices

Frankly, I don’t have the experience in the financial industry or related degree that would allow me to analyze the accuracy/logic of that article point-by-point. I just don’t know the topic well enough

Yet, much of this opinion piece seems to ring true. The writer at least gives impression he knows the subject well.

Regarding Bernanke’s views on deflation versus inflation we have this excerpt:

Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again.

These are the kind of articles I look for when trying to figure out how to invest next, same for these similar articles below that discuss the major economic themes and expected market inflection points that will dominate our financial markets for the next decade, and beyond.

Jim Rogers is one of the best market traders out there. He started the Quantum fund with Soros, one of the most successful hedge funds of all time. Jim is also frequently interviewed on both Bloomberg and CNCBC. Rogers, and of course Soros, are both legendary. I view Jim Rogers as a financial genius, and a true American hero (for his courage to speak the truth in very public forums about the lies and conspiracies, and idiocy of our government officials)

http://jutiagroup.com/2008/08/19/exclusive-interview-jim-rogers-predicts-bigger-financial-shocks-loom-fueling-a-malaise-that-may-last-for-years/

More Jim Rogers:
http://sufiy.blogspot.com/2008/11/jim-rogers-says-dollar-to-be-devalued.html

The great bond market crash of 2009:
http://prudentbear.com/index.php/commentary/bearslair?art_id=10150

Also this interview (search for the link to the mp3) of Hugh Hendry is great stuff:

http://commoditywatch.podbean.com/2008/11/01/hugh-hendry-of-eclectica-and-dr-francis-claessens-of-peers/

[CA renter]

Thanks for those links, stockstradr!

[CA renter]

Thanks for those links, stockstradr!

[CA renter]

Thanks for those links, stockstradr!

[CA renter]

Thanks for those links, stockstradr!

[Author]

Posts