Quote Originally Posted by brocktonblockbust View Post
US Bonds and any US dollar denominated instruments are the most RISKY investments on the planet. Why would anybody want to hold US dollars OR US bonds? The value of the dollar has been eroded terribly by all the money printing. Wait til interest rates which have been kept artificially low at zero for the past 5 years hit 3 or 4%-----kiss the US goodbye Lang. They cant even pay the interest on their national debt. And this is at 0% interest. Do you know what the payments will be if the rate goes up even to 3%?? I cant even imagine the carnage.
The Treasury just auctioned $$30 billion of seven year bonds yesterday. There was robust bidding and the Treasury could have sold eighty billion if they'd taken every penny on offer. And the price they sold them for? 1.93%. Assuming standard 2% inflation that means bond investors, the smartest investors on the planet*, people who read the paper and know the Fed is going to stop buying bonds, paid the US government 0.07% interest a year for seven year to look after their money for them.

Bond Prices Rise After Strong Debt Auction


The headline says that bond prices rise. And when bond prices rise, what happens to bond yields/interest rates, hmmm?

I already showed you a graph that shows how much the US would be paying if/when interest rates get back up to 5-7%. America would be paying the same percentage of GDP in interest as it was in the 1990s. And I already showed you the value of the dollar hasn't budged despite the Fed tripling the number of dollars in existence.


*Some of these guys spend longer every day studying the bond market and things that affect it than you do watching Alex Jones! A lot of them have spent twelve hours a day, six days a week, fifty weeks a year for decades studying the market. They're currently paying one and a half percent over inflation to lend money to the US for thirty years. If they're locking their and their investors' money away for thirty years for one and a half points over 2% annual inflation they can't be too worried about the imminent collapse of the dollar, can they?