Monday, August 23, 2010

Treasury Bonds Bubbling

Great discussion this evening on the Kudlow Report regarding the two most important questions for investors this decade:

1. When will the treasury bond bubble explode?

2. How massive will the damage be?

Remember, when the stock market bubble burst in 2000 the government printed money and ran massive deficits to try and artificially stimulate the economy.

They were successful. 

However, they also blew up a real estate bubble with their actions that burst in 2006.

The government then printed even larger amounts of money and ran even larger deficits to try and artificially stimulate the economy. 

They were again successful. 

Only they used far more debt and got far less stimulus after the real estate bubble burst.  Now we have reached the final bubble which is in US government debt.  This bubble has formed due to their reckless actions after the previous two bubbles popped.  Instead of taking our medicine then, we have now reached the worst possible scenario.

The important thing to remember is that after the government debt bubble bursts, the government will not be able to step in and artificially stimulate.  It will be game over.

As Mr. Schiff says below, "this bubble will be larger than the stock market and real estate bubble COMBINED."



Great article written today on not only why hyperinflation will happen, but how it will happen. Most authors believe it will be foreign selling that will trigger the event, however, this author shows how foreign selling does not even need to occur and the final outcome will be the same.

Click Here: "How Hyper Inflation Will Happen."

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