How will bond-owners' lifestyles be supported?

[Sig]

?
No they're not. There used to be a real return. Now there is very little. You have to go out five yrs for there even to be any real return.

Actually the difference between inflation and treasury yields is remarkably constant over the last 50 years, the chart below is just one example but you'll see the same no matter what tenor you look at. There's a lot of "back in my day" grumpy old man selective memory going on when it comes to this subject.
Now cue the tin hats to say the inflation numbers are all a lie.

 

[FireWalker]

Bonds aka debt is a two way street. It takes a borrower and a lender. If one thinks that borrowing money is rnslavement, then don't borrow money.

I have seen borrowing money to be a very useful tool in creating wealth in the business world.

All of money is backed by bonds, so you don't have a choice. Born in the US? You owe $50k. Plus interest.

Bond-backed dollars is not anything similar to the borrower/lender example.

 

[zdreg]

Actually the difference between inflation and treasury yields is remarkably constant over the last 50 years, the chart below is just one example but you'll see the same no matter what tenor you look at. There's a lot of "back in my day" grumpy old man selective memory going on when it comes to this subject.
Now cue the tin hats to say the inflation numbers are all a lie.

to say the inflation numbers are all a lie is to say the truth. start a thread on the subject if it interests you. your numerous mentions of tin hats suggests that you are not a so secret member of that group.

"because I am paranoid it doesn't mean I'm wrong." andrew grove, former chairman of Intel.

 

[fhl]

Actually the difference between inflation and treasury yields is remarkably constant over the last 50 years, the chart below is just one example but you'll see the same no matter what tenor you look at. There's a lot of "back in my day" grumpy old man selective memory going on when it comes to this subject.
Now cue the tin hats to say the inflation numbers are all a lie.

If you can't see that the blue line has intersected the green line in the last decade, which coincidentally is when greenspan and bernanke went berserk, then you need to have your eyes examined as well as your brain.

 

[Sig]

to say the inflation numbers are all a lie is to say the truth. start a thread on the subject if it interests you. your numerous mentions of tin hats suggests that you are not a so secret member of that group.

"because I am paranoid it doesn't mean I'm wrong." andrew grove, former chairman of Intel.

I actually took a class from Andy Grove, and you zdreg are no Andy Grove!

 

[Sig]

If you can't see that the blue line has intersected the green line in the last decade, which coincidentally is when greenspan and bernanke went berserk, then you need to have your eyes examined as well as your brain.

Thank you for your astute medical advice. You specifically said that "There used to be a real return. Now there is very little." I'm pointing out that there is always very little difference between interest rates and inflation. If you look to the left side of the vertical axis you will see the scale. If you subtract the green line from the blue line, you'll see that difference is remarkably steady at around 2-3% over the past 50 years. Which is also where it is today. If you're really arguing that it used to be 3% back in the good old days and now its 2% so there used to be real return and now there isn't then sure, you're right. My point was that despite occasional excursions the spread has remained remarkably tight over a very long time considering the data you normally see in the macro econ world and how much the world has changed during that period, something that surprised me the first time I say the actual data. You seem to think this is an argument you need to win so good job, you win.

 

[eurusdzn]

Thank you for your astute medical advice. You specifically said that "There used to be a real return. Now there is very little." I'm pointing out that there is always very little difference between interest rates and inflation. If you look to the left side of the vertical axis you will see the scale. If you subtract the green line from the blue line, you'll see that difference is remarkably steady at around 2-3% over the past 50 years. Which is also where it is today. If you're really arguing that it used to be 3% back in the good old days and now its 2% so there used to be real return and now there isn't then sure, you're right. My point was that despite occasional excursions the spread has remained remarkably tight over a very long time considering the data you normally see in the macro econ world and how much the world has changed during that period, something that surprised me the first time I say the actual data. You seem to think this is an argument you need to win so good job, you win.

That real retrun for many years post 1980 was phenominal!
Good God man, what are you talking about. That is what the old men experienced. They are lines to you as are the lines pre-1980 to me. I couldnt care less about THOSE lines and the very
old men who prefer sound money.
Treasury bonds....Mad Stacks.....were the goal in my early days.

 

[zdreg]

I actually took a class from Andy Grove, and you zdreg are no Andy Grove!

I agree, but your response makes you look like a big joke. you make dan quale look good. is that the persona you wish to present?

 

[Sig]

I agree, but your response makes you look like a big joke. you make dan quale look good. is that the persona you wish to present?

He was Vice President of the United States for 8 years and an all around nice guy. You could definitely do worse.