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And you know this how? As I have said a number of times, it's very easy to say that things should have been allowed to run their natural course if you don't properly understand the downside.

Which currency? There's a lot of t-bills out there, issued by a variety of govts (bills are zero-coupon bonds, normally with shorter maturities). Some govts, such as Italy, also issue actual zero-coupon bonds.

Indeed, although I'd start with guns 'n ammo. You'll be able to get whatever else you may need in due course.

$100bn isn't exactly "cautious", the way Bernanke described it, so it's still clear as mud...

If you think inflation is coming, don't pay off your debt. Use your cash to buy stuff with. If you think deflation is coming, pay off everything and lend money to someone (buy bonds, etc). The rule of thumb is simply this: inflation is good for borrowers, while deflation is good for...

This, surely, is the pinnacle of wilful ignorance and silliness. Apart from confounding money and government debt, have you actually thought about how the government is going to operate under your new system?

Hahaha, yes, no excuses now...

The CTD sure can change and does, although it's not that commonplace. Point is that the relationship between futures and cash bonds is complicated. If you hear anyone ever describe it as "abritrage" (unless they're an academic), try to stay as far away from that person as possible. If you...

It ain't that simple, dude... There's all sorts of complexities involved.

No, not quite. Firstly, "coupon" refers to normal Treasuries (as opposed to T-bills, which are zeros). So when they say "coupon spot position" they mean UST positions traded for spot settlement, i.e. regular cash bond trades. This is juxtaposed against "fwd or futures coupon positions", i.e...

This is some sort of mockery of Ecclesiastes 1:18, innit? Sadly, not quite the same elegance of expression or lyrical beauty to be found here... Can I try to apply your logical method please? Knowledge = Power Power leads to corruption God is All-Powerful (and All-knowing)...

Nah, just the differential between where the When-Issued (or the actual bond) trades going into the auction and the auction yield.

Here's a reasonably good writeup on QE2: http://www.econbrowser.com/archives/2010/10/why_is_the_fed.html

1) No 2) Whenever; there is no leakage 3) You want to see directs and indirects 4) Yes, but b/c is not really that useful... The key result that you should be looking at is the yield tail. In my experience, it's the only indicator of the auction performance. Of course, to understand it...

You can't "invest in swaps". They're OTC products. As the other poster said, sell some JGBs.

Super busy at the mom... Lemme come back when/if I get home.

This is incorrect... We've had this discussion before, Misthos.

Yes, if I have borrowed this money I have to make sure that it constitutes a productive investment, i.e. my return on this borrowed capital exceeds my interest cost. If that's not the case, I go bankrupt. I don't see any fundamental contradiction in any of this.

That's silly... Doesn't this assume you take out a loan to stuff the money under your mattress? I've always thought Chris Martenson is a coconut, personally.

If yen goes up (USDJPY goes down), the Japanese are likely, all else being equal, to give a bid to treasuries. As to why, just ask yourself what happens when the BoJ intervenes? The Chinese is an entirely separate dynamic altogether...