Posted on 09 June 2009
The moment of truth is approaching for the iShares Barclays 20+ Year Treasury Bond (TLT). As interest rates nudge upwards, the price of these long-term government bonds have been falling.
If Fed chief Bernanke can figure out a way to ratchet down interest rates, these bonds could begin to rise again. But he’s painted himself into a corner. Read the full story
Posted on 14 May 2009
Why invest in commodities? Two and a half billion people are going to live like Americans in the next 20 years and prices go up over time, that’s the nature of inflation. Read the full story
Posted on 26 March 2009
The U.S. government is going to have to print up trillions of dollars worth of new money in an attempt to break out of this economic crisis. This excess supply of currency in circulation is going to lead to demand-pull inflation. Demand-pull inflation is described as too much money chasing too few goods.
The U.S. government is heavily in debt to the tune of over $11 trillion. How will we pay this back? We will certainly not default on our debt anytime soon. It’s possible that the government could simply inflate its way out of this mess, so essentially the biggest debt ever amassed could be paid back with almost worthless dollars. Read the full story