Comments on: Government Debt: The Final Bubble http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/ “Love makes us poets, and the approach of death should make us philosophers.” Thu, 10 Nov 2011 02:30:50 +0000 hourly 1 http://wordpress.com/ By: anamericanidiot http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/#comment-309 Thu, 26 Mar 2009 22:27:10 +0000 http://deadmanblogging.com/?p=925#comment-309 I have explored this topic in the past as well. I think the stage is set and and it is just a matter of time. We have already seen rumblings in China. Just when the Treasury is buying up treasury debt instruments to prevent deflation (they are worried about that) the government is borrowing, creating money, and spending at break-neck speed. the problem comes when the Treasury decides they need to put the brakes on inflation by selling those instruments. If the international community is afraid of U.S. debt/economy those will be difficult to sell and inflation could be out-of-control.

http://money.aol.com/news/articles/_a/bbdp/fed-to-buy-300b-in-treasury-debt/387941

]]> By: Anonymous http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/#comment-308 Thu, 26 Mar 2009 21:02:55 +0000 http://deadmanblogging.com/?p=925#comment-308 dont stock prices also go up during inflation? why not just use our savings to buy stocks?

]]> By: Anonymous http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/#comment-307 Thu, 26 Mar 2009 21:01:49 +0000 http://deadmanblogging.com/?p=925#comment-307 how do you buy tips? how much do they cost, how do they work? what happens if they arent offered? would my tips be marketable? do you think its possible gold etf’s wont be sold anymore if you scenario plays out? what would happen if i own those? why is an online bank risky if it is fdic insured?

]]> By: deadman http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/#comment-306 Thu, 26 Mar 2009 19:26:37 +0000 http://deadmanblogging.com/?p=925#comment-306 well, i wouldnt say no one is talking about it. but i certainly dont think it’s getting the attention it deserves. and then some people are talking about it, but dismissing concerns for the reasons i noted in the piece.

i’m in the same boat as you – wondering whether i am being wise to have savings. there are a couple of options. invest in TIPS (inflation-protected bonds, which i bet won’t even be offered eventually once things really get bad). investing in gold, either directly through coins or gold ETFs, or perhaps other commodities should be a decent hedge. i think there is also a bank online where you can invest your money in foreign currencies, although i think that’s a little too much risk to take on. hard assets like real estate normally do well in inflationary times (on relative basis) although that situation is complicated by our housing bubble.

of course, i could be wrong and this time could truly be different. maybe debt as a percentage of GDP doesn’t matter like it used to!

]]> By: Anonymous http://deadmanblogging.com/2009/03/26/government-debt-the-final-bubble/#comment-305 Thu, 26 Mar 2009 18:02:59 +0000 http://deadmanblogging.com/?p=925#comment-305 uhhh…deadman just freaked the dude out. how come nobody is tlaking about this? how can i prepare for this? i thought i was doing well by saving money and having cash on hand, but what youre saying seems the opposite. seriously, what do i do?

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