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Why is a consumption tax such a bad thing, especially if it's accompanied by a cut in other taxes (e.g. income and corp)? Wouldn't that be good for American society, generally? I don't really have a view, but I don't see why it necessarily has to be such a bad thing...

This is incorrect (assuming it refers to bonds).

How do you figure that? I mean the drawdown figures... Most certainly true, that...

bwol, please... I beg of you. Spare us from your future pearls of wisdom, be a dear? Generally, the thing people need to understand is that bills are a liquidity management instrument, with a large liquidity premium attached to them. So with FF effective as low as it is, there's no reason...

Well, I don't know of any such trades at the moment in JPY, but I am watching... In the past, there have been times when ccy or rate vols get so cheap that you can construct some nice option trades that offer a lunch that, while not quite free, is certainly very cheap. An example in a...

You gather incorrectly (regarding my place of employment)... Moreover, you're barking up the wrong tree. I am not a positive carry monkey and don't have a fetish arnd selling tail risks (which is what you're referring to). The art and the craft, IMHO, is in finding cheap optionality that...

You're missing my point... I am not bemoaning the fact that I didn't go limit long JGBs 15yrs ago. My point (as I mentioned earlier) is that being short JGBs is hazardous to your health (as demonstrated over and over again by a whole number of supposedly extremely intelligent and capable...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=173859&perpage=6&highlight=eurex&pagenumber=2

Here's an interesting tidbit mentioned in this Bridgewater article (as an antidote to all the "Japan going down" stuff): http://online.wsj.com/article/SB10001424052970204368104577136531481564726.html (you might have to do the usual to get the full article). If you *bought* JGBs in the...

Indeedy...

Strictly speaking, no, and there's a lot of discussions of this subject out there. In practice, it's probably a good enough heuristic in most cases.

My question was addressed at tj, specifically, 'cause I wanted to hear his thoughts on the subject. I am aware of the rates aspect and I think atticus has mentioned it earlier in this thread.

I dunno what's preferable... Depends on a variety of factors, I imagine.

Really? There's some sort of a massive monumental secret that you ain't telling us about then? 'Cause it's just too valuable? And what was that about the carry? At any rate, on a serious note, I can think of one important (and obvious) difference that I haven't heard mentioned earlier (I...

Not sure about this in a broader context, but financial repression described in the article you have cited certainly is a natural outcome of the leverage cycle. Read "This Time Is Different" by Rogoff and Reinhart, if you want examples. Nothing is new under the sun.

This situation has nothing to do with Obama or any other president... It's just a natural outcome of the leverage cycle.

It actually IS a liquidity crisis for some countries, while it's, indeed, a solvency crisis for others.

Rebalancing and deleveraging in action, innit?

Ah, I see... Belgacom on Euronext. And yeah, I was only kidding about the Belgian/Walloon/Flemish Franc.

Haha, thanks, Debaser... Just a couple of questions arnd that, though: 1) What am I going to do with all those Belgian francs? 2) Actually, come to think of it, the real question is whether it's actually going to be Walloon francs or Flemish francs or a bit of both? Or, better yet, shares of...