Gold Rush

"Gold may surge to a record $2,000 an ounce next year if the Federal Reserve starts a third round of U.S. debt purchases to boost the economy"

Money Printing

"Bernanke thinks the answer to everything is money-printing"


"He thinks that’s what saved us from the Great Depression part two and that’s what could have saved us from the Great Depression part one. He’s doing what he said he would do, which is print money.”


“I can’t fathom the logic”

Look Before You Leap

"Italy isn’t Greece. Greek debt is just under $400 billion, while Italy has $1.7 trillion. And yields on Italian debt are soaring, so that debt load is about surge along side."
Click to read article

The True Message of the Bond Market

Isn't it remarkable how complacent bond market investors are about the chances of a default on U.S. debt. In fact, there are many reasons why the yield on the Ten year note should be trading at yields much higher than what we see today, over and above the specter of Congress failing to raise the debt ceiling.

Click to read article

Psychology of Bond Investors

We argue that as the United States takes on ever more debt and prints greater quantities of dollars, that buyers of our debt will demand higher rates of interest to compensate for greater risk.  In fact, our philosophy leads us to believe that rates would currently be spiking as Washington debates whether to raise the debt ceiling yet again or default on existing debt. Instead, rates are hitting close to multi-year lows. As a result, our critics have found a seemingly valid issue. However, we believe that there are strong market reasons that are holding rates low for now that do not invalidate our central thesis.
Click to read article