Quote:
Originally Posted by Jesus H Christ
This is my take on it. I understand in part, the president might avoid certain profitable investments because of his influence and vice versa. I also understand that his treasuries might be packaged into a verity of things like most, depending on the type. My point, compared to other presidents he's as close to zero risk as possibly and that's concerning. Why? - because he has no problem when it comes to Gov corporate bailouts or beating the drum for Americans to think/invest in new innovative ideas to compete in world markets. I call this risk and if the president shows a clear sign he's not going to take a slight personal risk, why should we?
Who truly knows the 1% investments, but let's paint a scenario that we'd both understand, porn. The best thing about the Internet crash in 2001 was bandwidth became dirt cheap comparatively. This spawned Tubes that devastated the vast majority of pay porn sites both large and small. Today a handful of Tube owners, processors, and cam/dating sites control a large percentage of the porn market and profits.
Global corporations, specifically energy/oil have enormous influence on Governments. The taxation collected from energy sales by State and Feds caused a complete addiction to the flow to run properly. Also, other large corporations employ millions of people as the banks process the billions of dollars. Now these same corporations are turning into cloud corporations who are dictating terms to governments and getting subsidies/bailouts combined with their huge profits. In short, lack of regulations caused our government to serve their best interests not ours.
I personally believe the 1% want to crash the market because this will cause a better profitable position with their investments/stock due to low overhead via cheap labor/property while consuming the vast smaller corporations. Also, they can dictate new subsidies and lower/no taxation as they "red carrot" employment possibilities to governments. In short, they will be able to control and profit from a market they stole/created just like the tube sites.
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I think part of it is what you said at first and part of it is that
T-bills (if that's what he's buying) is safe during a time when the return OF your capital may be more important than the return ON your capital.
In that sense, if that is what he's doing, I agree with him. If he's invested in
Bonds, however, he's definitely exposed to risk (interest rate risk). If what most of the people on GFY forecast happens (extreme inflation / hyperinflation / dollar demise), the longer end of the yield curve will precipitously decline in price. Although right now bonds remain strong, something I have pointed out in the face of much of the hyper-inflationary type rhetoric, it seems reasonable to expect declines at some point.
However, that said, collapse of the system the way you are describing it means the treasury obligations, all of it, will be worthless, too. Only in a scenario where all the top wealth was concentrated in cash, unexposed to the US Dollar, would this "group" be able to capitalize on a crash, but I neither think that is possible nor do I think the opportunity that would be created as you describe would be worth the pain, wars, loss of assets wealth, etc that these people would also have to face.
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