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To: kevao
Get. Out. Of. Bonds.

Sorry my FRiend, but that advice is not economically sound. The goal right now is not necessarily to make money - but to avoid losing it. Short-term Tbills offer that.

Think about it this way...all "money" is a claim on a promissory note.

If you own the actual promissory note then your have "1st deed" to the debt (i.e. short-tem Tbills)

If you own currency (what some incorrectly call "money") then you have a "2nd deed" to the debt (securities) that back the currency.

If you put your money into a bank for "safe" keeping then you have a "3rd deed" to debt, since your holding are backed by currency, which is then backed by securities.

A prudent investment goal in a Depression should be to have "first rights" to any debt that you own (such as securities). "2nd deed" and "3rd deed" can be greatly manipulated - or disappear altogether in very bad situations.

The equities market is hanging around 13,000 on the Dow with VERY small volume, and LARGE amounts of High Frequency Trading (HFT). That should signal warning bells to all investors.

Think of it this way...the equities market is Las Vegas on steroids, while the bond (debt) market more accurately tells the real story. There's a very good reason why bond yields have dropped through the floor on US securities.

If you were an investor in the world who needed to determine which country has the highest possibility of actually completing the future labor that it has promised then who would you pick?

Everyone is choosing the United States, which is why bond volume is so high and yields are so low.

This is also why those predicting the US dollar to be "toilet paper" are so very wrong, and have been for quite some time. The US Dollar Index has been strengthening, not weakening. Don't be surprised when it crosses 100 in the future.

Lastly, commodities such as oil, gold, and silver will not be having the spike that people expect (even though oil would do well when/if a world war breaks out).

9 posted on 08/05/2012 4:17:10 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
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To: politicket
This is also why those predicting the US dollar to be "toilet paper" are so very wrong, and have been for quite some time. The US Dollar Index has been strengthening, not weakening. Don't be surprised when it crosses 100 in the future.

Color me skeptical, but in 2006, and ounce of gold sold in the neighborhood of $660, now it's $1604. Almost triple the value. The same with silver and oil. That tells me that the dollar has been losing value.

14 posted on 08/05/2012 5:35:32 PM PDT by Sarajevo (Don't think for a minute that this excuse for a President has America's best interest in mind.)
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