There are a loser group of conservative guys here are buying because they hate Obama, and Ben and the FED.
Yes, really. They have been calling for the end of the world for 5 years. You know, we are going to 10% inflation and money will be worth nothing and doom and gloom #$%$.
Its not that simple. We are not truly feeling the full load of the debt the US has aquired. At just 5% interest rates, the government will have over a trillion dollars in just interest payments to make in 2016 when the debt is over 20 trillion. Thats real money, 1/3 of the budget. Thats when the goose hits the fan. Inflation and hyperinflation is a real possibility once the tipping point of debt has been reached and interest rates start to rise back to where they were when Clinton was president (5-6%). We cannot deny the huge interest payments that this nation will have to pay in the not too distant future. Its very sad, but we must live through this unpleasant period coming soon.
Wow, where do we go next? Anyone that bets on higher rates and inflationary pressures is a racist? Is that all you have left (and I do mean left!)? You buy TBT bcause of the inverse relationship between rates and bond prices. You but TBT because you can't triple the supply of the money supply and avoid infation. You buy TBT because the last tool left in the tool shed is currency devaluation. You buy TBT because their is an ongoing currency war in progress and the only way left to increase the velocity of money is via devaluation. You buy TBT because this economy is broken and you don't want to be standing on the sidelines. But, of course, the other reasons might be (1) Its Bush's faulty, or (2) Cheney lied and people died, or (3) I gots me an Obama phone, or (4) I am a racist or...well you get the idea.