Political risk is increasing and predictably the Treasury bubble has been bursting. There are major machinations going on in the bond market which will significantly affect you.
On 3 January 2009 I wrote United States Treasuries Are The Biggest Bubble Of All and on 18 January 2009 followed it up with Why And How The Treasury Bubble Will Burst concluding with
Taking possession [FRN$s] eliminates at least two types of risks. First is any potential counter-party risk with whoever is holding the Treasury Bill for you. Second, ‘political risk’ which is a much larger threat.
On 7 May 2009 I wrote about the key ratios moving and have been vindicated.
