Story about the upcoming stock and bond collapse and what to expect.

 

http://www.personalliberty.com/liberty/ ... and-bonds/

I'm not saying I totally disagree with that guy but my lord that's bleak!

I'm sorry but this guy is nothing but a profiteering idiot. look at his disclosure at the bottom.

 

He says that the money supply is increased, which is true, and inflation will be coming. I agree. The guy says buy gold and tbills. Where I agree with him is on the gold, ask tiny or anyone else in finance, you should always have a portion of your money in alternative asset classes, managed futures, commodities, natural resources.

 

Where this guy is completely wrong... is this. Tbills? are you frigging kidding me??!?!?!?!?!?!!?!?

 

Anyone buying government bonds, either short term bills as the guy suggests or long term bonds is going to get creamed, big time when the fed starts raising rates to curb inflation. Ie if you buy your bond now, paying you 2%, and when rates go up and now the bonds are paying 5%.... why would anyone buy your bonds paying 2%? If you go ultra short term, less than 3 months, you are getting no interest and in some cases, you would be loosing money on the transaction costs.

 

The best hedge against inflation is actually stocks and other assets whose market value is determined by supply and demand.

 

The bubbles right now are government bonds. The same people who preached Real estate as your retirement plan and next best thing are now pushing 2% cd's, government bonds, and gold. The government bonds bubble will blow up pretttttty soon. The gold one... who knows, may have a bit more legs under it. But the true price of gold is as fuzzy right now as the price on real estate was in 2006 and 2007. And that is the scary part. What is going to happen is as soon as the fed starts tighteting the rates, the dollar should regain some of the strength. With that, the prices on gold should come back, and all of the scare money will be leaving gold and going into bonds and cd's that will be paying 5%.

btw, just looked up tbills...

 

a two year tbill gets you a whopping .522% over the next 2 years. :hope: