s8, how can US bonds stay at ~0%? It's an indictment of the debt bubble: a containment of interest as extra debt. Bond holders are paying for low interest rates.
But one day, as the USD sinks as it periodically does, bonds will look risky. The FED can fiddle with 'twists and shouts' but one day there could be market mayhem as investors dump their bonds. This looks to be the case in Europe at the moment.
No one in their right mind thinks that all the political shuffling and austerity will help the BIGPIS. Rates are rising as perceived risk increases. The ECB must step in. So imagine the US FED swamped with sellers and unable to put a floor under the bond market. The floor of the bond market elevator is going down.
To short the bond market as Doug Casey suggests shouldn't be taken at face value. Now may not be the time but that time will come. Also he mentioned in a round about way the devaluation of currencies that would predate a bond market run eg. short currencies.
Another thing mentioned was the time frame. He talked of a generational change. The US could go on for another 15 years if it really wanted to. There is nothing else to compare with the reserve currency.
China is the works economic power house but the US is the world's financial mega bank. It still controls the levers that drive the global economy.
It's demise will be ugly and unpleasant and when that happens I wouldn't rather be in Philadelphia, thank you.
