Marc Faber: Treasurys Are A "Suicidal Investment"

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Thu, 12/30/2010 - 17:26 | 838506 GlassHammer
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I dug out an old college textbook and the section on T-bills actually refers to them as risk free. But this is the same book that refers to efficient market theory and other defunct economic concepts. 

Thu, 12/30/2010 - 17:32 | 838515 nope-1004
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Every economic textbook relies heavily on the sanity of those running the policies.  If sociopathic lunatics like Geithner are allowed to manipulate things for his buddies at the FBoNY, then no economic theory comes close to accurately predicting the trend.

Thu, 12/30/2010 - 19:14 | 838673 wisefool
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+1099. I got your world bank right here.

Fri, 12/31/2010 - 07:32 | 839196 Al Gorerhythm
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The one question left to be answered; When America gets put into conservatorship, where is it placed, who carries it? Won't find that in a text book either.

Thu, 12/30/2010 - 18:22 | 838610 Id fight Gandhi
Id fight Gandhi's picture

Mine used to go on about roi and how p/e matters and safe ways to buy and invest. If you followed that during the 90s when I was in college you'd would have missed the tech boom and bust.

I think anyone 20 years ago wouldn't. Believe how messed up a market could be. And how it keeps rising as the world falls apart.

Thu, 12/30/2010 - 19:18 | 838681 SoCalBusted
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By p/e, are you referring to what Obama calls the "Profit and Earnings ratio"?


Thu, 12/30/2010 - 19:33 | 838708 pgarner
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+1 on that!

Thu, 12/30/2010 - 20:05 | 838760 gmrpeabody
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Too funny!

Thu, 12/30/2010 - 22:14 | 838919 Fred Hayek
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Nothing's quite so precious as a pretentious dolt.

Unfortunately, nothing's quite so frustrating or dangerous as a pretentious dolt in a position of power.


Fri, 12/31/2010 - 02:13 | 839110 mberry8870
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What a dick. Pretty much sums up his whole life, winging it past the sheep.

Thu, 12/30/2010 - 20:33 | 838807 GlassHammer
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Yeah P/E and that ROI stuff sounded nice until you started working and learned it was a bunch of BS. 

Fri, 12/31/2010 - 01:04 | 839072 DaveyJones
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it's like many of those legal concepts they taught us in law school. It sure sounded good 

Fri, 12/31/2010 - 02:30 | 839116 TruthInSunshine
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Yeah, all the idiots who actually spent hard time learning the rule against perpertuities, when all they would have had to know is how to bribe judges legally.

Fri, 12/31/2010 - 13:15 | 839721 DaveyJones
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instead of bribing, I just look for the judges who believe peak oil is a scam. They're the most intellecutally vulnerable

Fri, 12/31/2010 - 06:09 | 839176 Byte Me
Byte Me's picture

You mean Newspeak hasn't redefined it as Pump / Excrement ??

b-b-but I thought this was the new normal.

Thu, 12/30/2010 - 19:49 | 838731 Dr. Doom
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In a sense they are risk-free. You give them a worthless piece of paper, and they give you a few more worthless papers in return.

Thu, 12/30/2010 - 20:52 | 838834 GlassHammer
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I actually had an accountant tell me that "you don't need to price it if its risk free." And I told him if it doesn't have a price then it's probably worthless. (I think that might be a line in a movie but I can't remember where I heard it)

Fri, 12/31/2010 - 14:26 | 839929 just_looking
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Faber is speaking about Treasury bonds ("Treasuries"), not Treasury Bills ("T-bills").  

Thu, 12/30/2010 - 17:29 | 838508 traderjoe
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The US will never repay its debts. Jubilee!

Thu, 12/30/2010 - 17:48 | 838549 breezer1
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the us won't pay it's debts. the serfs will.

Thu, 12/30/2010 - 20:28 | 838800 ejhickey
ejhickey's picture

I thin the amount of US debt exceeds he total money supply of the world

Fri, 12/31/2010 - 02:16 | 839113 macholatte
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I thought the US debt was the money supply for the world.


True terror is to wake up one morning and discover that your high school class is running the country.
Kurt Vonnegut

Thu, 12/30/2010 - 17:56 | 838558 Sudden Debt
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It does repay its debts by sending their young brave heroes to war to die for economic profit.

Thu, 12/30/2010 - 19:31 | 838701 ciscokid
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Your talking Wisdom.

Fri, 12/31/2010 - 01:10 | 839075 DaveyJones
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not sure the wars have been a good investment. Wonder if we took 2 trillion (including future medical) and built energy and transportation systems with american jobs, wonder what that would have looked like. Wonder what the savings of not having much of the world pissed at us is worth, especially now and looking forward  

Fri, 12/31/2010 - 02:16 | 839114 macholatte
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He who can no longer pause to wonder and stand rapt in awe, is as good as dead; his eyes are closed.
Albert Einstein

Thu, 12/30/2010 - 18:07 | 838575 Ruffcut
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The US will not be able to repay, but they are trying to hide them first.  Continued debasing of the bucky, must resume. The biggest point of pressure, of the economic dam, full of cracks and small holes.

Thu, 12/30/2010 - 18:22 | 838615 Id fight Gandhi
Id fight Gandhi's picture

I don't plan to either. Roll over on cheap money.

Better to have gold and cash when you go bankrupt.

Thu, 12/30/2010 - 21:20 | 838865 masterinchancery
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The non-extradition part is the most crucial.

Thu, 12/30/2010 - 17:33 | 838518 the rookie cynic
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Someone recently told me,"You can't eat gold!", so I shoved a T-bill in his mouth.


Thu, 12/30/2010 - 17:57 | 838559 Go4er
Go4er's picture

That is awesome!

Thu, 12/30/2010 - 18:09 | 838577 downrodeo
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damn, i just laugh-sprayed drinking water over my computer...Good answer!

Thu, 12/30/2010 - 18:12 | 838582 Eric The Red
Eric The Red's picture


Thu, 12/30/2010 - 18:14 | 838592 Seer
Seer's picture


Thu, 12/30/2010 - 18:15 | 838594 IQ 145
IQ 145's picture

 "Your majesty, the people have no silver"; "Well, then they can eat T-bills". I couldn't agree more with DrFaber; Bonds=instruments of guaranteed confistication. You'l get some "numbers" back; but you can kiss the buying power goodbye. The reference to the Zimbabwe stock market should be clarified; it went up 23000 percent, or something; but this was useless to people stuck in Zimbabwe dollars. It's alarming and amazing to me to see a huge amount of conversation and speculation about the stock market "going up" because of money printing. Yes, it will "go up"; no you will not "make anything". This is what you were supposed to learn between 2001 and 2008; the buying power is running out of the bottom of the bucket while the "numbers" get bigger. This is a classical inflationary epoch; it has started; it's very difficult to see how it will be limited or controlled.

Thu, 12/30/2010 - 22:16 | 838921 Freddie
Freddie's picture

Well America has Mugabe 2 and all the media, TV and Hollywood fawn over him endlessly.

Fri, 12/31/2010 - 10:04 | 839320 More_sellers_th...
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But ...But ... The Bernenke said he was 100 % confident...HAHAHAHAHA

Thu, 12/30/2010 - 23:00 | 838968 f16hoser
f16hoser's picture

That's the funniest thing I've heard in a long time!

Thu, 12/30/2010 - 23:19 | 838980 Midwest Prepper
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Hilarious!  I hope you included some knuckles with that T-bill for extra nutrition.

Fri, 12/31/2010 - 01:13 | 839076 DaveyJones
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quote of the week award

all that fiber and zero energy calories 

Thu, 12/30/2010 - 17:32 | 838521 suteibu
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LOL  So Bloomberg has him on as an expert opinion then trashes his expertise in the summary of the interview? 

Thu, 12/30/2010 - 20:46 | 838830 oddjob
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BNN is a must watch for any resource investor.After just 1 day of BNN the other business channels are just noise.


Thu, 12/30/2010 - 22:33 | 838935 Freddie
Freddie's picture

Is BNN streaming on the web?  Bloomberg is another stogge for the Saudis and their slimy Prince Al Waleed just like CNBC.

Thu, 12/30/2010 - 22:51 | 838954 oddjob
oddjob's picture

Available by internet subscription,satellite,or any decent cable service provider.

On their website they post every segment for free,but is delayed about 45 mins.

Regular interviews with people such as John Embry,Chuck Jeannes,Sean Boyd and many other people actually worth listening too.

Thu, 12/30/2010 - 17:40 | 838527 plocequ1
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No Treasurys? What else is left besides  stocks and Ron Jeremy videos.

Thu, 12/30/2010 - 17:43 | 838536 Hugh_Jorgan
Hugh_Jorgan's picture

How about the "G-Quad Index";  God, Guns, Gold and Grub?

Thu, 12/30/2010 - 18:09 | 838580 scatterbrains
scatterbrains's picture

can we squeeze a G for girls in there too ?

Thu, 12/30/2010 - 18:14 | 838588 Eric The Red
Eric The Red's picture

God won't save you (since it doesn't exist), but the others look to have some utility.

Thu, 12/30/2010 - 18:02 | 838567 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Long Ron Jeremy videos!

Sorry.  Compulsion demanded that I say that.

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