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Fiat Money And The Bonds
How bad of an investment are bonds?
I'm not making an especially profound observation when I say th
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You like your stuff and I’ll still like my bonds. My income has growth every year since 2000 and I have been 60-65 in bonds over the period. I don’ sell, I clip coupons from my old money (reinvested in munis).
You may know that economist David Rosenberg came out with a well documented piece that talked about upcoming disinflation due to growing sovereign debt and the demographic cliff (retired baby boomers needing to be subsidized by a shrinking work force) – for really long term capital gains, maybe buy the long end now?
Maybe the real TIPS yield is up because now long treasuries are a bet on junk.
It’s like investing on a company run by a demented clique led by somebody who’d gone bankrupt many times and is known to have made noises about paying its debts in funny money, while grossly increasing that debt to pay off its cronies.