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ProShares Short 20+ Year Treasury Message Board

  • steljan100 steljan100 Aug 22, 2011 2:46 AM Flag

    Dow 40.000 or Bond Market Crash

    30 year Treasury vs. SP 500

    Since 1984 our economy and financial markets have gone up dramatically but few have seen the other side of the coin, until now!
    1984 was the year that the treasury and stock markets start moving in opposite directions, the SP500 went up the Treasury went belly down and has ever since.
    The sacrifice of the treasury for growth was made possible with the brilliant Mr. Demchak from JPM, this mathematical genius was the pioneer of credit derivatives. The Banks and especially our Treasury were waiting for a financial product that allowed them to accumulate debt, leverage debt and stimulate growth. The US government was able to defeat Russia economically because of leverage. win the cold war and finance every single war ever since but enough of the political aspect, people might think this is a conspiracy website (this is not Zerohedge).
    This is what we see in the market.
    The correlation between the Bond market and the broader economy is as follows.
    We predict that if the US lacks the motivation and innovation to create a new industry like it did in the early 90s with the internet era to unload its massive debt to, interest rates will have to go up and the bond market will crash.
    The first 30 year treasuries that have fuelled this growth since 84 will starts maturing in 2014, the US can pay this people by issuing new treasury bills or by inflating the currency.
    In order to keep this game up, new treasury bills need to be issued to refinance our growth and status and also pay our lenders or spur economical growth that exceeds our borrowing but this is not the case because our economy is fuelled by borrowing.
    The other solution and it seems that is exactly what's happening out there is to inflate your way through this, keep printing money and this is also the Fed's last tool. Print as much as you can thats what QE-QE2-QE3 are there will be more QE coming in the future which basically means inflate your treasury to the point, that paying out the maturity to our borrowers becomes free for the US.
    Hyperinflation, DOW 40.000pts? or Bond market crash?
    We will keep you updated when the time is right.

20.88+0.11(+0.53%)Aug 25 4:00 PMEDT