Jamie Dimon: U.S. Treasury Bond Market WILL Crash. Unless...Submitted by Michael Nystrom on Thu, 10/11/2012 - 08:43
Duh. Isn't is obvious? Everyone knows the Treasury market will eventually collapse, but when a big guy like Dimon says it, it is big news. After all, you can't borrow money forever - especially not at rates this low. Eventually rates will rise, and at some point during the rise, a tipping point is reached and there is a stampede for the exits.
Unless it is averted. It will not be averted by reigning in government spending. And it can't be averted completely, but it can be delayed. When push comes to shove, the Powers that Be (TPB) will likely pull another Nixon.: They'll say, "Well geez, there's all that money sitting around in IRAs and 401ks not doing anything. We could sure use it to solve our National Emergency called the National Debt.
At that point, They magically "convert" those holdings into US Treasuries. Heck, you're not using that money. Ha! You can't even touch it. This calls into question whether it is in fact, "your money" and another reason why 401Ks are viewed with skepticism by many here. (But that is another story.)
The court system can no doubt conjure up with some esoteric ruling by which it is deemed "legal" for the government to do such a thing. This is what governments always do. There is no reason to think things will be any different this time.
Here is the Dimon video:
Comments and thoughts appreciated.