Bonds

[cottonpicken]

Ok,so if the g-7 has to roll forward 7.3 trillion in
bonds in 2012,will the bond holders roll into 1%
paper or will they diversify out?

And who will buy that paper?

[TOM4CWB]

C.P.,

They were talking about this on 'Squack Box' this morning.

It was thought in the first half of 2012 liquidity wouldn't be much of a problem... the second half of 2012 will be the 'stress test'. But with the US election in the fall... Quantitative Easing will very likely be used to take up the slack.

The refinance of EU bonds and debt has had 2 main forces... the German view... "Suck it up and bite the bullet" cuts... and the French view of using EU quantitative easing that spreads the 'pain' out over everyone.

France Won in 2011... and Germany is unlikely to have this battle fought all over again... 2012 will simply be an extention of US solutions... ie. 'greater good' wins over serious economic disrupting civil strife/uprisings.

[cottonpicken]

And what if nobody shows up to buy canadas 221
billion that needs to be rolled?

If harper puts it on the tax payers back what will you
say?

Spend some time contemplating the size of the
numbers,what would 7 trillion buy?All the ag land in
the u s 3 times over maybe?

[TOM4CWB]

"What is a cynic? A man who knows the price of everything and the value of nothing." - Oscar Wilde, Lady Windermere's Fan, 1892.

Relative Values:

If we "compare the value of a $1 Income or Wealth , in 1960 there are three choices.
In 2010 the relative:

a) standard of living value of that income or wealth is $7.36;

b) economic status value of that income or wealth is $16.10;

c) economic power value of that income or wealth is $27.60.

"The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it... But though labour be the real measure of the exchangeable value of all commodities, it is not that by which their value is commonly estimated... Every commodity, besides, is more frequently exchanged for, and thereby compared with, other commodities than with labour." - Adam Smith, The Wealth of Nations, 1776



http://www.measuringworth.com/uscompare/relativevalue.php

[cottonpicken]

http://www.youtube.com/watch?v=F-QA2rkpBSY

[wedino]

http://www.youtube.com/watch?v=ihyQLKB_Ppw&feature=watch_response