Shorting US treasury bonds

Both Marc Faber and Jim Rogers have recommended shorting long us treasury bonds. For a multitude of reasons, I think they are very right. In my opinion, shorting us 30-year treasury bonds, is going to be a very good long term trade. You can do this by buying the TBT. I honestly cant see why anyone would want to borrow any more money to the US government at this point. They have very little industrial capacity left, and what they do have, GM and Ford, will soon go bankrupt or be bailed out by the us government, further adding to the massive mountain of US debt. The US has so far been lending to consume, and what the government is doing now is basically bailing out people who consume for a living, with money they dont have. Historically its never worked, and it wont work now. The US government is either going to go bankrupt by defaulting on their bonds, or create such a massive amount of inflation that the bonds will be worthless compared to now. Maybe even both.

This graph is very nice. The 30 year US T-Bond Yield was 15% in the eighties! Like Marc Faber said: US government bonds is the last bubble.




By the way, I sold my PM stocks for 42 $ per share, to buy some TBT. I also traded some oil and telecom shares i thought were a bit oversold. Alright profits. I'm not planning on posting all of my trades here in the future, as this is not a trading blog. This was an exception.

Also, Obama won. I see he wants to introduce a new new deal. Even better reason for shorting long US trasury bonds. But too bad for the americans, and the world for that matter, who will have to suffer through this long government made recession/depression.