Saturday, January 11, 2014

The US Government Bond Market is a disaster waiting to happen



Other central banks have done it already around the world but basically what it demands to is money printing and in fact I don`t think it will help the bond market at all in the long run.

Maybe when they start doing it the bond market may rebound a little bit but don`t forget the 30 Year Treasury has already dropped by 20% since December 21, when the yield on the 30 year touched 2.51%. Now we are at 3.77%. In other words yields have gone up substancially.

I think the US Government Bond Market is a disaster waiting to happen for the simple reason that the requirements of the government to coverits fiscal deficits will be very, very high.


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.

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