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Filed under: In The News
Dear Eric:
Re: “Hey Bond Vigilantes, The Canary Already Died!”
Vigilantes my ass! They are not doing the work of god as some claim.
They do not simply sell short and take their risks like real men.
They manipulate everything using the tool of Western world media and every dirty trick possible.
They are worthless destroyers of people and nations without any redeeming human qualities.
They are murderers of whole populations for simple greed. They are financial NAZIS.
Jim
Bond Vigilantes Could Target US: Roubini
Published: Wednesday, 8 Dec 2010 | 7:16 AM ET
Economist Nouriel Roubini on Wednesday voiced concern over a compromise on extending tax cuts struck by US President Barack Obama and Republican leaders, saying the agreement could expose the US to bond vigilantes who will drive up bond yields.
Bond vigilantes – the term was coined by economist Ed Yardeni in the 1980s to describe major investors who demand higher yields to compensate for the perceived risks resulting from large deficits – could derail the country’s precarious recovery, some economists say.
Roubini, who has been dubbed Dr Doom since he accurately forecast the latest financial crisis, said on Twitter: “Obama-GOP tax deal costs $900 billion over two years. US kicking the can further down the road. Are bond vigilantes starting to wake up?”
More…
CIGA Eric Writes:
Hey Bond Vigilantes, The Canary Already Died!
If your investment voice is not laughing at the association of two unrelated pieces (bond vigilantes and tax deal) of information, then it’s time to reread Adam Smith’s “Wealth of Nations.” Smith often alludes to the fact that centralized governments require no vigilantes as their own actions inevitably destroy themselves from within.
The secular trend in the bond market, already down in constant currency terms (see chart below), could care less if Charles Bronson of Death Wish (1974) was the leader of the bond vigilantes.
Long-Term U.S. Government Bonds Total Return Index (LTGBTRI) to Gold Ratio:
The tax deal is simply more deficit spending, currency devaluation a la 1934-1940, intended to boost (C) consumption of GDP = C + I + G + (NetX). The Administration is smart enough to know that any attempt to raise taxes, regardless of the popularity of the idea, will quickly translate into lower consumption (C). That’s a huge deal. Personal consumption expenditures still account for greater than 70% of national income (GDP) as of Q3 2010.
Personal Consumption Expenditures (PCE) As A %GDP and Personal Consumption Expenditures As A %GDP Average from 1947:
Up and Down Wall Street
WEDNESDAY, DECEMBER 8, 2010
Bond Vigilantes May Thwart Tax Deal
By RANDALL W. FORSYTH
Higher interest rates could offset effect of proposed fiscal measures.
The biggest losers in President Obama’s deal with the Republican on taxes aren’t the Democrats. It’s the bond market.
Yields soared in the wake of the plan that will add upwards of $900 billion to the federal deficit, sending bond prices tumbling, especially in the municipal market.
The question then might be asked if higher borrowing costs, especially for the beleaguered state and local government sector and housing market, will offset the thrust from fiscal policy.
Notwithstanding how it was being played in the media, there was no "extension of the Bush tax cuts" in the deal made by Obama with Congressional Republicans. The tax-rate increases slated to take effect on Jan. 1 were staved off for two years, as most forecasters had assumed would happen. So, no surprise there.
More…
Silver ETF (SLV)
Re: “Hey Bond Vigilantes, The Canary Already Died!”
Vigilantes my ass! They are not doing the work of god as some claim.
They do not simply sell short and take their risks like real men.
They manipulate everything using the tool of Western world media and every dirty trick possible.
They are worthless destroyers of people and nations without any redeeming human qualities.
They are murderers of whole populations for simple greed. They are financial NAZIS.
Jim
Bond Vigilantes Could Target US: Roubini
Published: Wednesday, 8 Dec 2010 | 7:16 AM ET
Economist Nouriel Roubini on Wednesday voiced concern over a compromise on extending tax cuts struck by US President Barack Obama and Republican leaders, saying the agreement could expose the US to bond vigilantes who will drive up bond yields.
Bond vigilantes – the term was coined by economist Ed Yardeni in the 1980s to describe major investors who demand higher yields to compensate for the perceived risks resulting from large deficits – could derail the country’s precarious recovery, some economists say.
Roubini, who has been dubbed Dr Doom since he accurately forecast the latest financial crisis, said on Twitter: “Obama-GOP tax deal costs $900 billion over two years. US kicking the can further down the road. Are bond vigilantes starting to wake up?”
More…
CIGA Eric Writes:
Hey Bond Vigilantes, The Canary Already Died!
If your investment voice is not laughing at the association of two unrelated pieces (bond vigilantes and tax deal) of information, then it’s time to reread Adam Smith’s “Wealth of Nations.” Smith often alludes to the fact that centralized governments require no vigilantes as their own actions inevitably destroy themselves from within.
The secular trend in the bond market, already down in constant currency terms (see chart below), could care less if Charles Bronson of Death Wish (1974) was the leader of the bond vigilantes.
Long-Term U.S. Government Bonds Total Return Index (LTGBTRI) to Gold Ratio:
The tax deal is simply more deficit spending, currency devaluation a la 1934-1940, intended to boost (C) consumption of GDP = C + I + G + (NetX). The Administration is smart enough to know that any attempt to raise taxes, regardless of the popularity of the idea, will quickly translate into lower consumption (C). That’s a huge deal. Personal consumption expenditures still account for greater than 70% of national income (GDP) as of Q3 2010.
Personal Consumption Expenditures (PCE) As A %GDP and Personal Consumption Expenditures As A %GDP Average from 1947:
Up and Down Wall Street
WEDNESDAY, DECEMBER 8, 2010
Bond Vigilantes May Thwart Tax Deal
By RANDALL W. FORSYTH
Higher interest rates could offset effect of proposed fiscal measures.
The biggest losers in President Obama’s deal with the Republican on taxes aren’t the Democrats. It’s the bond market.
Yields soared in the wake of the plan that will add upwards of $900 billion to the federal deficit, sending bond prices tumbling, especially in the municipal market.
The question then might be asked if higher borrowing costs, especially for the beleaguered state and local government sector and housing market, will offset the thrust from fiscal policy.
Notwithstanding how it was being played in the media, there was no "extension of the Bush tax cuts" in the deal made by Obama with Congressional Republicans. The tax-rate increases slated to take effect on Jan. 1 were staved off for two years, as most forecasters had assumed would happen. So, no surprise there.
More…
Silver ETF (SLV)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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