I was thinking what would happen if people lost faith in the USD and therefore US Treasuries.\u00a0 Would they all of a sudden be an asset that countries holding them would want to liquidate?\u00a0 If so, then wouldn’t interest rates climb unexpectedly?\u00a0 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?\u00a0 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.\u00a0 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?\u00a0 And would TBT be a good fiat trade (I know it would lose purchasing power but might come in handy to pay debts still).<\/p>\n","protected":false},"excerpt":{"rendered":"
I was thinking what would happen if people lost faith in the USD and therefore US Treasuries.\u00a0 Would they all of a sudden be an asset that countries holding them would want to liquidate?\u00a0 If so, then wouldn’t interest rates … Continue reading