And now it's LEW to London.
My, my, my, I wonder what Obama is up to.
Retirement investors and savers, if you haven't figured it out yet just wait a few years. You'll see.
This is the TLT board. The long bond. Over 90 percent of ALL U.S. issued long dated paper is held by the Federal Reserve Bank. The long term interest rate is as controlled by the FED as is the overnight rate. At this point in time interest rates have LITTLE to do with "flight" and everything to do with manipulation. Central banks from other countries are not buying the US long end. They are buying their own bonds to do their own "easing".
And exactly WHO, pray tell, do all of you financial rocket scientists think sent Bernanke to Japan?
And if N1 did send him, why do ya suppose he didn't send his girl Yelen?
If ya have spent any time in Japan at all, then you know the answer to this one.
"19T debt plus babyboomers' social security..." Exactly correct. The net effect will be the transfer of "standard of living" from one portion of society to another portion of society. You don't have to be a PHD to figure out the winners and the loosers. Wage inflation will be the conduit. It has been going on ever since the end of WW2 and accelerated when Nixon gave in to the bankers and dumped our gold backed currency.....inconvenient truth, when you can't win by competing...then steal.
"Bond prices are merely reflecting the flight of capital away from the asset price bubble"....Really?
Have ya looked at the FED's balance sheet lately. Doesn't look like flight to me.... And who else do you think is buying the long end of all US paper?
"Unbelievable!".......Why is it unbelievable? Every Central Bank on the planet is buying THEIR OWN bonds fist over teakettle. And they're not buyin' the US long end. Our "saviors" at the FED are doing that job for us. Hey merenkov...just because it isn't going to stop doesn't mean that is isn't worse than the "tulip mania". It is worse. Heaven help us when the Ruskies and the Chinese final kill the $ as the reserve currency. Then, just maybe, the dirtbags in this country will finally be forced to live within their means.
"Socerer"....Lacy Hunt said "with nominal growth slowing in response to low saving and higher debt, we expect"
Growth, savings, and debt (other than the taxpayer's) has nothing to do with why the long rate is where it's at.
If Lacy Hunt had attributed the low rates to the FED buying every piece of 30 year paper they could lay their hands on with non-existent unbacked currency, THEN you could use "Socerer".
And just for grins, I don't think that the decision to do that came out of the FED or Bernanke. I think it came straight from the oval office and Giethner. Bernanke didn't have big enough balls to put the country on that course all by his little self.
Let's have a discussion about what is going on here rather than just how to make a buck off of it.
"I'm not sure why you think he Fed wants them" .... The FED does not want low rates! Geewiz you know who benefits from high rates...the owners of the FED. And you know who owns the FED. The UST made it crystal clear that the administration intended to square up the balance sheet by stealing the equity out of the US dollar. UST came right out and said so. Why do you think Obama sent Geithner "globe trotting" in the second year of his first term. What do you think Obama was doin'? "Reassuring the aliies" ....NOT....hell we owned the paper.
What I can't believe is that you are telling everyone that the 5000 year low rates are a function of the world economy, deflation, and overindulged credit. THATS NOT WHAT"S GOING ON HERE.
However, I will give you,that you are "dead nuts on" when you say invest the market you have not the market you hope for.
"If you worked in the fixed income department of a European or Japanese pension fund or life insurance company (and were required to be in sovereign bonds), where would you put your money?"
Oh Hogwash, You yourself have said that the percentage of US 30 year paper held within the United States is well in excess of 90%. External money IS NOT running to hide in long term US paper. The FED is pushing the long rate around and you know it., not a pension fund or insurance company. And the UST is pushing the FED. And you know who is pushing the UST. Stop with the "fungibility of money" arguement already. It's hogwash right now. That's not what's going on here.
Stocks up, bonds up, dollar up, gold up, comodities up, miners up, everything up......the FED is pouring money into the markets and all Wall Street can say is SHHHHH!
Clearly, a believer in central banks, manipulated fiat currency, and a fractional banking system.
Let's here it for our financial services industy and those who live off of it .
GO TEAM GO!
YOU have managed to make us the biggest debtor nation on the planet.
You may be right, but anyone that can put on the show that she does can't be completely clueless. I give 'em more credit, I would guess she knows knows exactly what Obama is doing and what he wants. Substitue "without ethics" for "well-meaning".and you're on to something. She and Bernanke and I believe Greenspan for that matter were all just bit players in a much bigger game. If we have learned anything since '08 it's that FED chairman are appointed yes men to the oval office. I would ask you to recall the image of Bernanke standing behind Obama at Camp David upon re-appointment with his tie pull off. Remember that sad image? He reminded me of a lap dog.
You know better....it's not "collective insanity"....as Paulson said, it's the fear of "pitchforks". The ONLY fear that they REALLY have.
"Do you really think".....Don't be silly, of course not.
Equities have been goin' up big and down big, all the while rates keep goin' lower.
That doesn't happen when the marketplace sets rates.
It happens when Central Banks poor money into the markets.
What I do think is there is so much hogwash coming out of the "dozen people (maybe)" that Crystal Gayle must be selling them her cut "Don't it make my brown eyes blue".
Lew and Geithner and Yellen and Bernanke and dare I say Obama must be grinnin' ear to ear. As Treasury told Kiel Bass, they are going to trash the dollar. And as Schiff says, when inflation finally gets here it is going to be ferocious. Hey middle class boomers...your lifetime of savings (which you have invested for retirement) is exactly where society intends to get the dollars to pay back the loan for the excessive standard of living of the last 50 years. Have a nice retirement! The UK just fired a nuke in the currency war. And the biggest debtor societies will be the biggest loosers. And guess what country is the worlds biggest debtor.....
And "Real poverty" has been created through fractional banking, an unbacked currency, and forced inflation through excess fiat creation. The last 50 or 60 years has been characterized by money center banks using "their FED" to effectively steal the hard work, innovation and productivity from middle class Americra. With each fiat dollar they create, the inflation it causes enables the concealment of real wage contraction. You are correct about the creation of Real wealth merenkov, but unfortunately the real wealth that we created over the last half decade went into the pockets of a relative few. But not to worry, innovation is the product of education...and we totally frittered that lead away.