Quote:
Originally Posted by Pinner
OK your both crazy 
At this point who would buy American bonds ?
I'm amazed interest rates haven't spiked through the roof, 22% interest rate like in 1982 would cripple the economy. |
Are you serious?
The one thing I love about money is that it has no friends or loyalties. It's like a river, flowing the easiest course.
In the worst moments of 2008, when the world genuinely stood on the abyss and even the Chairman of the Royal Bank wondered if his institution was going to make it, where did everyone flee too?
Where did all the money go to in the moment when overwhelming fear was upon us?
The USA dollar and USA Treasury Bonds.
At one point in early December, 2008 , short term USA treasuries were trading at negative yields, meaning distrust of the financial system was so acute that investors were willing to pay the USA government to hold their money for them. The USA dollar was soaring in that period as everyone left all the other currencies in the world and fled to the place they felt gave them the greatest security in the face of impending calamity.
There can be no more genuine moment of pure honesty than that one.
Seriously, you need to take off your blinders and take a look at the world around you.
A sell-off in the USA dollar from the extremes of 2008 is more of a vote of confidence in the growing stability of the global economy than any condemnation of America's fiscal position.
The panic money is leaving and heading back out into the world again.
Just remember what everyone did when the fear was overpowering. A very instuctive moment.
Cowperson