East Coast Economic Update,:Feb 15, 2009: How do US Treasury Bonds work

[yahoovisitor]

USA is taking the line of creating political, financial, social, & religious stunts that play a vital role in moving forward for its global destruction policies to carry out. US govt has slaved its own nation. Born free taxed to death. $ will not be the global currency any more as declared in G-20 meeting. Internationally global policies of politics & trade are quickly changing. If USA wants to keep standing where it was it will have to leave the war track & not violate global peace any more.

[jamesa66]

Thanks for the informative video. I don't understand one comment you made: "to cause hyperinflation so that whatever loans they have outside can be paid off very cheaply, at the cost of your livelihood and sovereignty." If the currency is devalued how are loans paid off cheaply? Help me understand I'm missing something.

[miniccc]

Which one is on the Weimar Republic?

[simplewhimsy]

Very informative, thank you very much for this video.

[limitedplay]

what about bonds that are adjusted for inflation EE's or IE's or something?

[clayvessel]

Nice job.

[wellingtonsc75]

Very informative. How quickly do you think this will happen? The US gov't must be putting a lot of pressure on countries who are buying our debt to make sure they stay put. More than anything, it seems like our gov't is buying time so they can transition to something else... Amero?

[Kittenkattan]

Well, before the Reinhardt thing I was saying June/July ,09. I am still saying that.

But ultimately it is the Inversion that will hearld the end of the dollar and the rise of the Amero. Peace.

[joel1923]

Do you really believe the Amero is real?

[Travinyle1]

Good job as always my friend

[magbigblock]

Thanks for commenting. I feel this situation for all of us is so serious I'm thinking of asking my boss to lay me off after 21 years of service. Plus, I'm in local govt and last week we were told March payrolls may not happen. Soo...maybe collect unemployment to ride out the 90 days and then collect my pension? I realize there will be a tremendous tax hit, but a house paid for is better than a cardboard box. Also, wife has a solid job for now. I'm young enough to do "handyman" jobs to supplement

[msamour]

The cost of livelyhood is correct, however in this case, not the cost of sovreignty. this situation has never happen in such a way before in history. Normally a country that defaults gets invaded, and all of its assets liquidated. However, the United States has a large stockpile of nuclear weapons, and cannot be invaded. Your leaders would just destroy the whole world, and don't think for a second they wouldn't, look at what they are doing to you now.Mike,On.

[magbigblock]

Question for all - I need advice. Right now my traditional pension plan is sound. I have 9 years to go before I get my monthly check. I received a quarterly email about "concerns" among members in the same account as me. The talking heads said we're good and diversified and invest wisely and ONLY lost 27% last year. Sheeet!!! I'm employed currently, but wondering if I should pull the plug and get what's there and pay off everything. Problem is, I need to be unemployed for 90 days to gain access.

[Kittenkattan]

If you have a traditional pension, there is not much you can do. If it is your 401K, well, You could put all in bonds. Or, cash it in and buy gold. That is what I am doing. But, I am not a broker. I am some average guy with a lot of time on my hands to read and research. Do what you think is right.

[marcusguernsey]

could you give some actual ratio`s of china investing in metals versus pulling out of US treasuries? The China pull out,or "de-investing"( not sure if that is a word) has been circulating for some time, the only thing is, unless china is strong enough to stand on their own w/ no future investm.for min.10yrs,i dont see how it would be in their interest.i dont see this scenario playing out until china is firmly in negative growth.

[Kittenkattan]

They have already dumped $190 billion in treasuries in the last 3 months alone. Google " China and the US Treasuries, on the News search. I think since they are have to create stimulus packages, the money has to come from some place. They have already dumped bonds and will continue as long as their GDP is in negative territory.

[marcusguernsey]

thanx for replying, and that helps bring some clarity to the issue.you said as long as their gdp is in negative territory,are you referring to the US? as china is still in "positive growth". If you really have some time on your hands, perhaps you could clarify why the western gov`t want the chinese to re-adjust the yuan.Could this be the reason why China is stayin "ahead" of the world markets??

[magbigblock]

Thanks for explaining all that - very good and 5 stars!!

[Kittenkattan]

My short answer is yes. Since, history has shown us that we are not welcome in any particular country, Gold and other metals aer easier to convert to cash then other currencies. Everyone should like that. It is a response to instablity.

[Kittenkattan]

ie......Everyone should do like wise!......

[FGTBOGSAT]

Gold mining stocks: ABX and NEM.

[Kittenkattan]

Physical Gold only. No paper gold. It will be worthless in a few months. It is another ponzi scheme to be next to burst.

[Dakarah777]

Wow! You're so on it! Just look at the guy that defrauded all those people, giving them fake gold certificates, and had 13M of physical gold in his house. I guess more of this to come.

[sirbadman]

The us treasury market is going to be flooded pretty soon, too much supply and not enough demand will trigger the inevitable US dollar collapse The impacts on other currencies are not clear. There is a good potential to get impressive gains (superior to bonds) in stocks in tandem with the upcoming surge in inflation, but make sure you are looking at oil and gold producers, along with companies involved with food production, or even cheap food (my dominoes pick has been going good since xmas).

[CaligalinLibrary]

Celente is predicting the Bond crash either this month or next month.

************

My coworker thinks that the latest stimulus package is great and that it will not lead to hyperinflation, but lead to new jobs. Yikes!

[Kittenkattan]

I know. Your coworker is delusional.

[magbigblock]

No worries...my co-workers think we'll be juuust fine. Yeah, right. :(

[evcrawfish]

you said , links over there, i don't see links. i must be getting old in my blind senile age.

[sthrnynk]

Nah, you're just getting senile in your old blind age...lol ;)

[evcrawfish]

:D  :D

:)---

[Kittenkattan]

No, I did the video at midnight and went to bed. Now your links are there. You're not senile.....Yet!

[lightleague]

I think I'll dub you: The Official Youtube US Bond Barometer. You must not take your position lightly. Carry on (good vid).

[Kittenkattan]

That is a great mantle to carry. I hope I live up to it.

[dashxdr]

Thanks for the info!

It seems like there are 3 variables with an individual bond (say the 30 year). #1 is the cost of the bond, I assume that's $100. #2 is the yield, how much the government pays. #3 is the current market value for this bond.

The government can control the yield on newly issued bonds, but once they enter the marketplace the effective yield can rise and fall as the price of this bond changes in the market.

[dashxdr]

Now the discussion of 30, 10, 2 year and 2 month bonds makes me think of The Titanic. The Titanic had these interior spaces that were separate from each other, supposedly to make the ship unsinkable. The problem was these chambers had no tops, so water could pour from one chamber to the next. Once enough water filled up one chamber, the ship tilted, and this caused water to flow into the next, fill that up, then the next...and so on. It was an unstoppable process that lead to sinking.

[dashxdr]

I compare the bond progression with sinking of the Titanic -- also it relates to Exeter's Pyramid and the flight to safety. If hyperinflation is feared, investors exit the 30 year bond and move to the 10 year. Whoops, still not safe, so they go to the 2 year. Not safe! So they go to the 2 year, then the 2 month, then to cash, and that's not safe either, so they go to precious metals finally and there is safety because no one can print precious metals in limitless quantities. What a ride!

[Kittenkattan]

A very good analogy! Treasuries as water proof doors on the Titanic!