T-Bond

By holding T-Bond rates lower than they otherwise would have been, investment that would have otherwise gone to T-Bonds goes to other forms (such as corporate bonds).

Social Security Privatization, Arnold Kling | EconLog | Library of Economics and Liberty 2009

By holding T-Bond rates lower than they otherwise would have been, investment that would have otherwise gone to T-Bonds goes to other forms (such as corporate bonds).

Social Security Privatization, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The T-Bond purchases help fund the Porkulus and Budgetulus spending.

"The administration is focusing now on rule number 12 of Alinsky's Rules for Radicals: Pick the target, freeze it, personalize it, and polarize it." Ann Althouse 2009

A deflationist would need only to convert all assets to cash, or to a super safe T-Bond equivalent, and then wait for precipitously plunging prices of everything to multiply the purchasing power of cash.

The Optimist 2005

If the coming bad times will coincide with rising long term interest rates, then a simple hedge would be to sell short a T-Bond future, and to subsequently just roll it forward.

The Optimist 2005

Furthermore the optimist advises people that "A deflationist would need only to convert all assets to cash, or to a super safe T-Bond equivalent, and then wait for precipitously plunging prices of everything to multiply the purchasing power of cash."

The Optimist 2005

When the model reads +2 we will hold a long position in T-Bond futures

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When the model is less than 0 we will hold a short position in T-Bond futures

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Figure 2 displays the performance achieved by holding a long position in T-Bond futures during each of the five periods above.

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Figure 4 - T-Bond futures performance (assuming a long position of one futures contract) on days when JSBM1 equals +2 (1977-2011)

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