Wednesday, May 27, 2009

'Were I China . . .'

". . . sitting on some trillion dollars plus of Treasury bonds, I'd be nervous too. In fact, I'd be shortening duration like a madman, laying off anything but the shortest end of the T-bill curve and hedging like crazy, all the while doing my damnedest not to get caught so as to not ignite a stampede and risk getting trampled.
"Oh wait: They are."

(Hat tip: WRSA.) UPDATE 11:58 p.m.: With some help from Instapundit, we are reminded that things only ever go one direction in the Magical Land of Hope -- from bad to worse: The bond market goes sideways, pushing up interest rates, and the DJIA loses 173 points.


UPDATE II: Linked at Protein Wisdom.

UPDATE III: "Bond vigilantes"? Hmmm. Sound like extremists.


  1. Fortunately or not, I think we just sold China, Iran, OPEC, and some others about 3/4 of our bad debt. There is no way out. For them to sell is to risk what little value remains. More, the less the dollar is worth, the less we can buy from abroad, and the weaker their collective financial future is.

    If this hasn't been a planned economic war, then some groups have just pulled off the largest theft of money and enslavement of whole continents and peoples through an economic hoax I have ever seen or imagined. The more people try to save their wealth and the creation of that wealth, a wealth based on a fiction created by the thieves, the more they will be trapped.

    Though I can see where this is going for my finances and wealth, I can see that it might just work. And, no, Obama nor Bush thought this up, even if it is a war. Talk to the Pentagon, CIA, and a few ultra rich people if you want to know what happened, or that would be my guess. The reason I doubt the 'Illuminati' or something, is that without military and intelligence backing, such a thing would be like trying to blackmail Microsoft's Gates... very very risky, with few places he and his could not track you and the money down, then take you down one way or the other.

    Just a thought.

    Oh, and in the long run, so long as the idiots who are at the controls don't mess it up (which they are desperately trying to do), it will be better in the end than if they had let things go status quo. It sucks when one finds himself on the side of the shadow bankers and powers that be, but... I mean, let go bankrupt what should die on the vine, then let the free market economics fill the voids, and yeah, we will be in very good shape.

  2. I'm glad to know I'm not the only one checking Denninger's Market Ticker every day. I was starting to feel like a conspiracy theorist.