No. of Recommendations: 0
At any rate, at some point, maybe it will take until the Social Security surplus turns, the piper must be paid, and that will either mean much higher interest rates, higher than they would have been had they gone up earlier, or big-time inflation, or big-time recession-depression, as there is nothing left to borrow.


All those funds slushing around there trying to chase yields that are already being kept artificially low by Asian CBs. Trouble is those latter guys are not in there for return on investment, but long term strategic positioning for their countries. Amazing - the biggest market place of all, manipulated out of equilibrium.

Troublesome for us investors is the prospect of bonds going into free fall overnight one day based on a political decision courtesy of someone in Beijing.

Imagine the day the Chinese determine that the utility value of keeping their current country-level vendor-financing scheme going (in order to get Western know-how, and manufacturing capability) no longer keeps up with the expected losses on their $ investments.

When that day arrives - who knows. However placing large bets on $ assets is an attractive proposition for gamblers only IMHO...

SB
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