Another way of saying the same thing is apparent stability gives way to instability and apparent predictability gives way to unpredictability. The hubris described yesterday (2015: A World Ruled by Hubris, Willful Blindness and Desperation) arises from the overweening confidence of central bankers that this same tired gambit of pushing assets higher by pushing capital and speculative money into risk assets can be played successfully with no limits.
But there are limits. A short list of limits might include:
1. Marginal borrowers/buyers: the game now is to lower interest rates and mortgages rates so ever-more marginal auto and house buyers can qualify for ever-less prudent loans.
This works until it doesn't, as marginal borrowers/buyers are last on, first off: they default at the first lay-off, medical emergency, etc. Defaults tend to pyramid in recessions as lay-offs and financial stress spreads quickly through those living paycheck to paycheck.
2. The Greater Fool: All Ponzi schemes rely on an ever-expanding pool of greater fools who buy into the scheme and reward the previous (much smaller) cohort of greater fools. Ponzi schemes fail because the pool of greater fools is finite, but the scheme demands an ever-expanding pool of participants to function.
All Ponzi schemes eventually fail, though each is declared financially sound because this time it's different (though it never is). The number of greater fools required to keep the scheme going eventually exceeds the population of marginal borrowers/buyers who have yet to buy in.
At that point, the asset bubble collapses, not from any specific cause, but from the draining of the pool of greater fools: with nobody left to buy, sellers find the market is suddenly bidless--that is, there are no buyers at any price.
3. Highly leveraged speculators have their fingers on the sell button. The name of the game for central bankers for six years has been liquidity: make credit cheap and abundant, especially to hot-money financiers and speculators.
Borrowing immense sums to speculate in expanding asset bubbles is highly profitable as long as the bubble continues expanding. But when the pool of greater fools has been drained and the bubble starts deflating, leveraged bets generate outsized losses. As a result, leveraged speculators must sell first and ask questions later.
Selling begets selling, as other speculators who hesitated must sell before their own losses become ruinous.
4. Everyone's all-in: greater fools may be willing to buy more risk assets, but eventually they reach the limit of their ability to borrow/buy. At that point, their borrowing/buying ceases.
Then the leveraging up reverses into deleveraging, and the highly leveraged greater fools have to sell to meet margin calls.
All asset bubbles are Ponzi Schemes; so are social welfare programs and unfunded liabilities such as Medicare:
In a zero-yield world of rising rents, everyone is forced into risky stock market and housing bubbles. Central banks have lowered the yield on savings to near-zero, forcing capital to seek returns in risk assets such as stocks, junk bonds and real estate.
As rents rise, the financial logic of buying a house with a low-interest mortgage becomes undeniable: when it costs less per month to buy a house than to rent the same dwelling, why not buy?
This demand pushes the asset class ever higher, generating a self-reinforcing feedback loop that rewards buyers at every stage except the last: when the bubble finally pops, the last cohort of greater fools is destroyed financially, and the previous sets of greater fools are crippled as assets go bidless or lose much of the value.
During this expansion phase, every borrower/buyer is a financial genius, and every central bank that drove everyone into ruinously risky assets is omnipotent and god-like. But when the limits that are intrinsic to Ponzi Schemes are reached and the asset bubbles deflate violently and unpredictably, the geniuses face financial ruin and the central bankers are revealed as scammers, liars and hubris-soaked fools.
Meanwhile, those who resisted the siren song of central bankers to risk their capital and incomes in asset bubbles are derided as Bears who have missed out on the Greatest Bull Market of All Time. When the wheels fall off, all the smart guys naturally claim to have exited at the top. But it is impossible for everyone to sell at the top; the assets are owned by someone all the way down.
All those owners will lose, and continue losing, until the asset is repossessed, sold or surrendered.
The Fed's zero-interest rate policy (ZIRP) has made safe assets--cash and savings--into trash; savings earn less than inflation, meaning that holding safe assets is a losing proposition.
The more capital that is driven into risk assets, the greater the financial devastation when the asset bubbles all pop, which they inevitably will--and not in some distant future.
All played at as they desired and planned.....
There has never been a better time,
to buy yield free risk.
Interesting that in 1965 there were 60 million employed full-time, and there are almost 50 million on food stamps now. Wasn't 1965 when the War on Poverty began?
Yeah, just like the War on Drugs..
And look how great that turned out!
They're both going exactly as planned.
Nice little $149,885,000,000 RR TOMO today at .05. $314B in 2 days.
http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
this is a chess game the only difference is both players (elite and awakens) know the petrodollar days are numbered
the govt end game :"slaughter/fleece/suck in as many sheeple as you can "
feel the heat of the recovery Bitchez
WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.WE ARE IN A RECOVERY. WE ARE IN A RECOVERY. WE ARE IN A RECOVERY.
/sarc my bad
"WE ARE IN A RECOVERY, GREEN SHOOTS"
You are absolutely wrong. We have already recovered and the green shoots have become giant Sequoia trees.
GREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTSGREEN SHOOTS GREEN SHOOT SGREEN SHOOTS GREEN SHOOTS GREEN SHOOTS GREEN SHOOTS
Those are the 5 Leaf Variety right? With that special sweet skunky aroma. Hmmm Hmmm Good.
My Fucking Unicorn shit a green shoot about 10 minutes ago. Hang on Mother Fuckers...Up we go!
FED can start QEIV or preside over the collapse. Which course would the coward take?
Perhaps they believe the asteroid will bulls eye us all on Jan 26?
We're running out of bread and the circus is leaving town. All the special snowflakes that our government and society has been creating for the last couple of generations are about to get a big surprise and while they haven't been taught anything on how to survive, they know all about how to protest and riot. A hard rain is gonna fall....
We're at the top of the roller coaster ride and those at the back can finally see where this shitshow is headed...grown men screaming, LET ME OOOOOOFFFFFFFFFFFFFFFFFFFFFFFF!
Skydiving without a parachute can be quite interesting...once...
"when the asset bubbles all pop, which they inevitably will--and not in some distant future."
I agree with what is said in the article. But, I want a date, plus or minus a couple of weeks to make it easy for the prognosticators. Please define "not in some distant future." Is that two months? One year? Five years? Is thirty years the "not so distant future?" MANY people have been calling for a crash "not in some distant future" for over FOUR years now. WHEN WILL IT HAPPEN?!?!?!
Fill in the blank: It will happen on (MM/DD/YYYY) __/__/20__ (Or should that be __/__/21__)
Money is chasing the trend. Without somewhere else to go when will the trend change?
+1 for asking. It is easy to parrot and toe the line here on ZH about impending doom ( just as much as the MSM does not)
You hoisted the BS for that comment. Give us a specific day or you suck. Childish complaints and you are unsatisfied because you are acting pretentious. ZH covers an overall theme of todays world, yes as in the world. You analyze the info here and all the global players are like dominos, and you can see the formation of a line, but who or where it starts is not in the Hasbro directions.
you got me...i suck and I am pretentious. so are the 3 morons that upvoted me.
Aww the dainty kitten got her feelings hurt. Relish those votes, your confidence depends on it.
-1 just utterly devastating.
funny..I read an article today on ZH... that I need to worry about an asteroid strike. you did ask me for specifics right? Apparently you haven't been reading the same day in day out doom and gloom. Don't get me wrong, I probably feel the same way that you do. that it's a shit storm and bound to fail, but to not acknowledge that it is mostly fear porn, is just silly. I may be back later...when I am done washing Ebola off my hands and done counting the dead as predicted by the Georgia Guidestones. Ricky Bobby has spoken.
More cards for the house of cards, more cards! And close that window!
During a discussion with a recalcitrant sheeple about the true nature of the FedRes and the coming collapse, a friend was sarcastically asked, "According to you, what is the single most important thing I can do to prepare? Tomorrow?" To which my friend replied, "Learn to how to shoot."
The sheeple's OODA loop maxed out with that answer. Pretty funny.
The banksters need to repay us.
http://www.instituteforsportcoaching.org/wp-content/uploads/2014/07/ooda...
Banksters will NOT repay us. In fact the Cromnibus Spending Bill made future bank bailouts automatic -- no more messy voting process by congress on bailouts. The timing was flawless.
If they refuse to repay then they forfeit their lives.
That they "repay us" is a demand not an expectation or hope.
A demand is a form of attitude. Thinking that they "will not repay us" is a defeatist attitude. One cannot fight a battle without a clear goal in mind, and "won't" and "can't" are not valid goals.
I, and we, should take the attitude that the banksters, having robbed the American country the last 100+ years, ARE to repay us, in one form or another. I am determined to collect. Are you?
Gold, silver, or heads will be gladly accepted.
The banksters need to repay us.
Like Orwell highlights in 1984: Language informs thoughts as much as it betrays thoughts.
"assets are owned by someone all the way down."
riiiiiight...should we play the game "find my mortgage" or "name that derivative"?
I hope we get to play "cheap oil + PMs" some more first.
Abolish money.
over 40% of American's at the moment have debt in collections. Debt saturation on every level. It's almost over.
I was positive this stat was bullshit. And I was wrong (although it's "only" ~35%).
http://www.usatoday.com/story/money/personalfinance/2014/07/29/america-d...
Sorry 35%. The sheeple can't take on any more debt
I want to bet that the other 5% that is not accounted for... is sitting in pawn shops and check cashing/advance stores.
You meant the other 15% to 20% no?
He probably meant the other 64%...
That margin of error we can live with.
The GDP and employment margins of error?
Those are just blatant lies....
I don't believe that the GOV is keen to advertise that over 40% of it's citizens are on food stamps and in collections.
Just no way to "position" that one.
You know whats at work here? Its shit tectonics. When two shit plates strike and come together under incredible pressure, what happens Bubbs? ....Shit-quake.
Somewhat amusing that the % of people in collections (around 35%) is about the same as the old time rule of thumb for % of house payment you could afford VS Gross Salary, back in the days when that was considered or even thought about....
They simply cannot force us to consume what we do not wish to consume.
Therein lies the rub, and their diminishing rate of return on their zero interest rate programs.
The private sector had already illustrated this quite clearly when the auto makers offered 0% financing. Some people bought. Yet still, a majority chose not to.
"....... Everyone is forced into risky stock market and housing bubbles...."
That is Pure Nonsense........
Nobody is Forced to Take Any Position.......
The Truth is, as Bill Gross himself acknowledged in his "Mea Culpa Ante" in April 2013, most Participants have been in the "Right Place at the Right Time" for a Generation, and the Epoch Made the Men.....
And as I said in Response...It will Ruin them as the Piper Comes Calling.....
The Problem is all everyone knows is "Long, Long and More Long".....
It is easy to Win when everything rises...
Except Now that is Not Working, because Diversification is likewise a Fraud, akin to believing the World is Flat.....
The "Managers" can't Outperform the SPX........
We see this with Hugh Hendry.......just one of many such examples......
They don't know how to Trade the "Short Side".......
They truly believe that "Fundamentals" matter and Manipulate Themselves into believing it......through a Combination of Arrogance, Ignorance, Delusion and Indoctrination....
The Real Answers to Markets lay in Time, Price and Volume......
Everything else is Noise and Irrelevant......
I've Traded Short pretty much Non-Stop (Long ETFC @ .60 cents in '09) since 2007.....
And incidentally, in early 2008 I was Long 2009 100 APPL Puts which for a time, didn't even have a Bid.......
It was somewhat different when APPL hit 79.......
Doing Just Fine on the Short Side......Net Yield in EXCESS of SPX 500 since 2009......
Don't blame the Fed or anyone else because you, like Most Participants, lack the Courage of your Convictions and the Skill Required to implement them............
Manipulation is a Lame Excuse by both Proponent and Believer........
It is the Lure of Easy Money that always draw the Sucker's in and Always Will......
The Ultimate Truth, Now and Always, is that Most Participants' Ambitions Far Exceed their Talent, Skills and Knowledge......
As I have written:
Boom and Bust Predate, and Will Outdate.....
If you don't Know What Position to take and When to Take it, don't Play the Game......
And if you do notwithstanding, don't Blame the Fed or anyone else......
So I have 300k in cash in my 401k that is administered by a big bank,If I make the wrong choice I'm fucked. Please don't tell me I'm not forced to do something because if I make the wrong choice I lose.
I'm reading Trees Grow To The Sky by Chainsaw Pete. A real page turner.
In the Film "Wolf of Wall Street" is one of the Most Important Lessons - Hailing from the True Master - on How and Why Participants of All Stripes Lose Money in Markets:
"They Want Something for Nothing".........
That is the Crux of it All........
How much Time, Energy and Capital does one invest to Master Brain Surgery ?
Now imagine that Surgery wasn't done over Hours, but Rather YEARS......
One actually needs to Assimilate Far More Knowledge than that to Do Well in Markets over Time.....
Yet one wants to come into Markets Off the Cuff, as a Hobby or 'Side Thing' and Make the Big Money ?
As the True Master says:
The Market doesn't Beat Particpants, They Beat Themselves......
And it all starts by Expecting "Something for Nothing"......
When I was younger, and running cons, someone asked me "don't you feel bad taking his money?" I replied "No,not a bit, because you see, he was expecting something for nothing...and that is exactly what we gave him...nothing"
A fool and his money are soon parted.
No one is forced into high risk, but for a lot of retirees there may not be any other option, as spending their capital (when many are only in their 60's) is pretty much a guarantee they will run out of money before they die.
So the CB's are just 'forcing their hands', without putting a gun to their heads.
So when the inevitable crash happens, the ones most devastated will be the pensioners and others too old to recover their life savings.
And CB's think ZIRP has no costs, what a joke.
After the collapse yellen will be saying "but NO ONE could have foreseen this!"
The Retirees/Pensioners have indeed earned their Money.........
Except that they then EXPECT that they can simply Put in Money in the Magic Machine and out comes Yield.....
No Work, Effort, Skill or Talent Required......
Just throw Long, or as in $ 300 Billion Plus, just follow Uncle Warren "Smith" Buffett......
You See, expecting "Something for Nothing"......
If those same Individuals had invested the Time and Effort in Studying and Understanding America and Markets, they could have Easily and Safely threw Long the 10 Year @ 4 % in 2010 and could have Cashed Out at 1.4 and would be sitting Pretty Right Now......
What Losses would the "Gold Bugs" have if they Sold at @ 2k, or the Oil Longs @ 100, and Put all that Capital in US Bills ?
For those Retirees/Pensioners, I give you a Freebie Here and Now:
Cash Out everything you've Got, Put it in US Bills which can be owned DIRECTLY with a US SS # and ID/License and Wait it Out.....No Malfeasance, Manipulation or Loss Possible......
Deflation will actually Produce REAL Positive Yield on US Bills in the Years to Come ......
It will be Balance Sheets and Speculators that Fail; Not America......
As I have Said: Trillions, Not Billions Will Be Permanently Lost By Current Rentiers.....
Cash in hand or the Banks might confiscate it,lot easier said than done.
As usual, reasonable logic... except missing a factor or two. Like, for example, the kind of rampant deflation you descibe is almost ALWAYS the trigger for extreme responses that lead to hyperinflation.
I mean, seriously folks! Think about the fundamental forces involved.
Uncle scam is a totally out of control spendthrift. He spends MUCH more money every year... even as mainstream folks earn less each year, and pay less taxes each year.
He can't borrow the money, not in the usual sense anyway, so he must get the central banksters to loan him the money. Sure, in various indirect ways, to fool the most superficial of folks, but still.
And Uncle is so deep in debt already, he definitely cannot afford to pay interest rates that correspond to his credit worthiness. Hahaha, is that ever an understatement!
And so, the central banksters are forced to lend more and more AND at lower and lower interest rates. And hey, as long as they're in a fiat world, the banksters can print up truly unlimited piles of debt-notes, and lend them at any interest rate they want. And so they will.
-----
So where does this lead? More and more money to uncle scam at lower and lower interest rates. And since the interest rate to other big borrowers is tied to this rate, more and more money to other borrowers.
So where does this lead? Do you see the pattern?
-----
Here is a FACT that confuses a great many people who think and worry about hyperinflation, and can't understand why hyperinflation isn't already happening.
The federal reserve does NOT print money. Every penny, dollar, billion and trillion the federal reserve (and other central banks) create is not money... IT IS DEBT.
What is debt? Well, that's not exactly the precisely relevant question. I suppose the more precisely relevant question is, what is the unavoidable consequence of spending borrowed money?
You have to pay it back? Sounds about right.
So, as various authors and posters in ZH have said several times, when anyone spends borrowed money on something, that is money NOT spent in the future.
Everyone knows how this works. You can earn ZERO, and yet live a very luxurious expensive life... IF some moron or central bank will lend you lots of money... I mean "debt". And you can continue living the life of luxury until... what? Until your lender says, "no more from us, buddy".
Then what?
Now you have to pay for all that stuff you bought... plus interest. Which means what? Which means you can earn BOATLOADS of money in the future, and none of that money is available to buy ANYTHING in the general economy, because it is all required to pay back the debt.
So, as many have said, buying anything on debt is stealing from the future.
Well, now the vast majority of governments, corporations and regular folks are massively, insanely deeply in debt. So whatever they earn, most vanishes into the black-hole of debt (past spending), and is NOT available for current spending.
Which means... once debt levels are high (as now), much less money is available for regular spending. Instead, it is consumed by payment of previous debts... to pay for the things you got, enjoyed and threw away long ago.
This is MASSIVELY deflationary. How could it be otherwise? When almost everyone is in deep debt, nobody has much money to spend today. They're servicing their debts.
Even in the most "stimulated" scenario, where everyone in debt takes out new loans as fast as they pay off their old debts, this is much less spending than the years they were getting themselves into debt! MUCH less. Think about it. Back then, ALL THEY EARNED... PLUS... ALL THEY BORROWED was spent to buy stuff. Now, even if they keep borrowing themselves up to their credit limit, they still can't spend as much as they earn. That's a huge drop, and that's deflationary.
-----
The above is the part that supports the thesis above... that as COMPLETELY AND FUNDAMENTALLY INSANE as it actually is, an argument can be made that lending lots of money to a complete debtaholic deadbeat with horrific job prospects (increasingly impoverished taxpayers) at super-low interest rates... is a good investment.
It truly is a testament to the insanity of modern times that an argument like this can actually be made, and actually make sense.
That is... unless you look at the "rest of the story".
It is precisely this deflationary spiral that convinces predators-that-be who can print unlimited addition money (or "debt")... to do so.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
And then outdo themselves.
... year after year after year.
Just look at the history lesson of Germany.
While many of us tend to imagine hyperinflation is fast, like throwing a match in a barrel of gasoline... whoosh... the process of hyperinflation took many years... about one decade.
------
So indeed, the world and government is insanely, massively, overwhelmingly in debt. So this causes deflation. Which naturally leads to a deflationary spiral when debts are high... and they've never been higher.
Do people really think "this time is different"?
To be sure, lots of people see what's going on, and come to the correct conclusion... that the irresponsible predators-that-be will cause hyperinflation. And they see them creating boatloads of "money" (except it is debt, not money) out of thin air, and jump too quickly to the conclusion that the process will be "faster this time".
Well, no... it appears not. It appears some things move faster in modern times, but not this. Perhaps only because they can create unlimited debt when they can simply create it out of thin air in unlimited quantities. So they can... and have... kicked the can down the road, down the road, down the road... in fact, so much further down the road than many responsible people imagined "they'd never go that far".
Well, they have. And they appear willing to GO TO ANY LENGTHS to kick the can a bit further down the road, even when they come to realize "there is no way out".
For evidence, see Japan.
Oh, it's coming. But the deflation has to happen first. The excuse has to happen.
To me, 2015 appears to be "the year of deflation and depression". And maybe 2015 will also be the first year of "excessive response" that eventually leads to hyperinflation. But hyperinflation will take time.
-----
BUT... some things ARE different this time.
#1: The money you put in the bank is no longer yours.
#2: The laws have been changed to make bailins easy.
That's right. When you deposit money in a bank, that "money" is no longer yours. They changed the laws last year to set you up for the sheering. Now when your bank fails, you can't get "your money", because you do not own any money. You are a creditor to the bank, and they will STEAL all your money in the legal scramble that is called bankruptcy... or liquidation. You're last in line, and you get nothing.
And now, with laws recently passed, your bank doesn't even need to go bankrupt to steal your money. They just declare a need, then JUST TAKE IT. That's called a "bailin". So no, the taxpayers don't bail out your bank... YOU DO. Which is just fancy language for... they can and will steal your money.
When?
2015. That's my guess. And in MASSIVE quantities.
This too is massively deflationary, which is another reason 2015 looks to be the year of massive deflation.
-----
BUT... to buy US debt as a solution?
Sorry, but that's just INSANE.
Why? Well, what do those two laws tell you? If you have ANY brains whatsoever, they tell you they will steal from you without constraint at their convenience.
And THAT is who you want to trust your life savings with?
And THEY are who you believe will honor their promises?
Not in a million years.
BUT... what if they DO NOT steal your 10y or 30y bonds? Great deal like the author above claims?
NOPE. Why not? Because they'll just say, "oh, you'll get your money, but you must wait until the bond expires... at 10, 20, 30 years".
NOW you see why hyperinflation is a danger? Because by the end of 10 or 20 or 30 years, the dollar will be GONE... and you will NOTHING in return.
Bottom line?
TO HAND YOUR SAVINGS OVER TO THE BIGGEST PACK OF HYPER-PREDATORS THE UNIVERSE HAS EVER SEEN IS A VERY BAD PLAN.
FED PPT defending S & P 500 2000 level. Soooo predictable its not even funny anymore...