Question on Long term treasuries
I was thinking what would happen if people lost faith in the USD and therefore US Treasuries. Would they all of a sudden be an asset that countries holding them would want to liquidate? If so, then wouldn’t interest rates climb unexpectedly? If the answer to the previous 2 questions is yes, then would it not be wise to get into TBT, which is 2x the inverse of the US 20 year Treasuries for a long term trade. But what if the Fed decides to do yield curve control and buy out all lengths of the bonds to keep all interest rates down? That would make the TBT trade worthless, as long as the Fed can print enough money to buy all bonds liquidated, which is much more than all stock markets. I just wanted to put that out there to see what anyone else thinks of this. Do you think Treasuries could tank eventually when everyone loses faith in the USD from all the money creation? And would TBT be a good fiat trade (I know it would lose purchasing power but might come in handy to pay debts still).
I think the FED will print until the masses revolt with pitchforks and take down the govt! They’ll suppress rates until the USD is fully destroyed. What can happen is an exit strategy being prepared now.. (something maybe like a revise Chicago Plan)… or some digitized coinage.. or whatever. Default and restart. Not sure what happens to the rates after that. If free market is let to decide.. than yes.. rates will be higher than now (and bonds lower)… for sure. If they decide again to suppress rates.. then ground hog day.
Your idea not so crazy.
https://www.eightfatswine.com/efs-2-chris-kimble-is-the-treasury-bull-market-finally-ending/
Thanks for that link silver fox. Great interview and possibly confirms some of my hunches. Much appreciated.