Does anyone still remember the old Vietnamese Imperial City of Hue on the Perfume River?
Well, back in the day, some genius said "we had to destroy the city to 'save' it."
Gee, thanks Benny! Didn't know you were a student of History, but merely thought of you as an Ivy-league Keynesian Economics Professor!
Looks like you had to 'destroy' the 30-yr US Bond to 'save' it!
Nice.
Chubby Checker's "Twist" was at least entertaining. Yours stinks.
Thursday 22 September 2011
Destroying to Save?..........from Rico
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2 comments:
Actually, it was the hamlet of Bong Tre(sp?) that inspired that quote
errr... uhhh... I'm as anti central planning as anyone, but this chart shows a dramatic RISE in the 30yr (dramatic fall in the yield). That means the Fed accomplished its retarded short term goal of forcing people to buy longer term treasuries versus shorter term.
Don't get me wrong, this is doomed to fail in the long term, but right now, and in particular if Europe blows up, the US dollar and US treasuries will be the only relatively "safe" place to put your money. Gold and silver will get spanked SHORT TERM, as will everything other than US dollar/treasuries. Use the opportunity to buy physical gold/silver when they are on sale. Ultimately they are the only money the central banks can't devalue. But short term and long term are very different.
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