A little advice for you dimwit. That guy wasn't in any logical argument. If he was he might or might not have had anything to say.
But that doesn't change the fact that as an American you are a traitor and you hope for the downfall of the USA and lots of people will condemn you for that. Condemnation is not debate. You best learn to undersand that.
WS you are not listening to me. I don't have any debts. I don't need a lecture on how the debtors will be destroyed. I have cash and Treasury bonds and I will hold them for a long time to come. They will go up in value and purchasing power while stocks gold real estate and other things go down. Cash is king. Deflation means US Dollars get more valuable. US Bonds are best.
From what you said about accumulating your holdings of cash and Treasury bonds, you should be respected for your achievements.
A person would think that you would have safety and stability in the years to come,
Within three or five years there will be a new word coined in the US vocabulary, similiar to the well known "Black Monday". It will be called something like the "Slaughter of Treasury Bonds". Here's how it will go.
The breakdown deflation we are experiencing today is destroying productive organizations and associatings in the US, such as trucker organizations, businesses, airlines, computer companies, etc.
There is still massive amounts of uncovered debt out there that is continuing to destroy many additional productive organizations. In the worse case, the loss of productive entities will drive production below consumption. In a better case, increased taxation will drive production below consumption.
There is a large under class of welfare state recipients and hanger-ons (maybe 30%) who are paid by the governments to do nothing. As the shortfalls of production cause falling tax receipts, there will be greater difficulty to fund these expenditures. But governments must continue to fund these programs because the alternative would be widespread civil unrest that destroys even more of the productive mechanisms. Government leaders will not allow funding for these social programs to be reduced in the long run, though they may have temporary cutbacks until riots occur.
Eventually the loss of productive organizations will get so severe that the US government will panic and start creating large amounts of dollars to rescue them (and fund their siocial expenditures).
The excess dollars created to pay on social programs will cause the dollar to decline and also cause interest rates on Treasuries to rise because the government will have a harder and harder time to fund their buget deficits.
When the dollar decreaes 10% in a short period time, causing bond long term interest rates to rise, the value of ten year treasury bonds will decrease 80% to 90%. If the dollar decreases 50%, which is probable over the next five years, the value of ten year treasury bonds will decrease 95% to 99%.
Anyone who holds large amounts of treasuries during this time will become destitute because of the double effect(drop times long time). Cash holders won't suffer so much, since they will only experience the single drop in value.
Diogenes, think carefully about your bond holdings, please.
"Cash is king. Deflation means US Dollars get more valuable."
How can US Dollars can hold value when the government has the ability to print as many of them as they want?
If deflation threatens, is there any doubt that's what they'll do?