Another Nail In The Coffin, Destruction Of The Dollar, T-Bonds, Deemed Junk

[twyacht]

Facing an abyss, our BHO, and Liberal Congresscritters, are fighting over the bar tab ON THE TITANIC.

Ever heard of Pimco? They are the largest American Firm the buys American Treasury Bonds, to the tune of $237 Billion Dollars.

Well, yesterday, the CEO, Bill Gross DUMPED ALL OF IT, AND urged other investors to dump it's holdings of American Bonds.
The interest rate risk, (return on investment),...IS TOO LOW!!!

http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.

Yields on Treasuries may be too low to sustain demand for U.S. government debt as the Federal Reserve approaches the end of its second round of quantitative easing,(Printing money) Gross wrote in a monthly investment outlook posted on Pimco’s website on March 2. Gross mentioned that Pimco may be a buyer of Treasuries if yields rise to attractive levels.

Treasury yields are about 150 basis points too low when viewed on a historical context and when compared with expected nominal gross domestic product growth of 5 percent, he wrote in the commentary. The Fed is scheduled to complete purchases of $600 billion of Treasuries in June. (This is called monetizing the debt, which NO country has ever survived).

Gross in his February commentary urged investors to reduce holdings of Treasuries and U.K. gilts and buy higher-returning securities such as debt from emerging-market nations. “Old- fashioned gilts and Treasury bonds may need to be ‘exorcised’ from model portfolios and replaced with more attractive alternatives both from a risk and a reward standpoint,” Gross wrote.
Emerging-Market Debt

Gross noted that inflation may be a bigger factor than many suggest.

Treasury futures and options and bank debt backed by the Federal Deposit Insurance Corp., according to the company’s website. The fund can have a so-called negative position by using derivatives, futures or by shorting.

Derivatives are financial obligations whose value is derived from an underlying asset. Futures are agreements to buy or sell assets at a later specific price and date. Shorting is borrowing and selling an asset in anticipation of making a profit by buying it back after its price has fallen.

*****

This is not some high roller on Wall Street, this is the credit worthiness of this country, and the value of the dollar in the world market. If America can't get any "real buyers", than we are as good as toast. And inflation will skyrocket.

The Fed, and failed policies, by both parties, are running us off a cliff......With the Saudi Day Of Rage tomorrow, and the Saudi's are already shooting protesters, fill your car/truck up today, and keep your stocks up.

[tombogan03884]

I've been saying for 2 years that uncontrolled printing can only lead to massive inflation devalueing the dollar.
We are headed the same route as Zimbabwe.
And for the same reason, we are governed by a stupid black man who thinks money grows on the welfare tree.