The former hedge-fund manager [Julian Robertson] has been buying “curve caps,” an investment that acts like leveraged put options, on long-term government bonds, he said today in an interview with Bloomberg Television.
“They would insure us in the event of massive rate increases,” Robertson said.
Robertson, 77, has been saying the U.S. may face financial “Armageddon” if Japan and China don’t continue to purchase its bonds to finance the country’s deficit spending. The Treasury Department would be forced to raise interest rates to attract new investors, he said.
-- Bloomberg, 2 October 2009 [1]
The Fed will not have the b**** to raise interest rates until we see inflation making a comeback, or it will risk pushing the entire U.S. economy over the abyss of another Great Depression. By the time the Fed starts to raise interest rates, it will be a matter of playing catch up with inflation. Mainstream economists who think higher interest rates will tank the commodity market will have a hard time understanding this dynamics until inflation is once again making headline news. The Fed wants inflation so bad it will do anything and everything.
-- bhc investment, 15 January 2009 [2]
-----//-----
References:
- Julian Robertson Buys ‘Curve Caps’ to Hedge Against Rate Hikes
- Global Wealth Destruction as Gold Rises, Part III
Related posts:
0 comments:
Post a Comment