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Who Are The Winners And Who Are Losers In A Bond Market Collapse?

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Who are the winners and who are losers in a bond market collapse?

will it not be highly deflationary ?

winners - those with cash?

losers - those in debt ?

in a bond market collapse -

losers - those with bonds

the answer is in the question.

to say any more, you need more information, for example, did the bonds collapse because the currency collapsed?

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in a bond market collapse -

losers - those with bonds

the answer is in the question.

to say any more, you need more information, for example, did the bonds collapse because the currency collapsed?

Losers - the UK taxpayer. average 47p in the pound increase necessary to cover the current budget overspend....

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Losers - the UK taxpayer. average 47p in the pound increase necessary to cover the current budget overspend....

which leaves nothing left over for rent payment/mortgage payment..................

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it would really depend on how it was handled.

theoretically the gov could just default on the bonds, or it could print it's way out of the problem.

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Who are the winners and who are losers in a bond market collapse?

will it not be highly deflationary ?

winners - those with cash?

losers - those in debt ?

There is a theory that if you print money that there will be a bond market collapse.

But others say that the deleveraging going on with the banking crisis has caused such a rapid and violent deflation, that printing money at that rate that the Bank of England are doing, will not halt the deflation.

Bonds which pay a positive rate of interest are then even more positive to own if there is still deflation around.

The test of this alternative theory is to look at the bond market. Is the price of Gilts collapsing?

Doesnt mean to say that there wont be a collapse. My personal opinion is that we might see a collapse, but not here. Try watching the US.

And would a collapse in the US bond market be such a bad thing? It could only be brought about by countries such as China and Japan and other big US bondholders selling their bonds. But what would they do with the cash? They would have to buy American with it. Will the sight of big orders help or hinder the US economy? With that sort of cash coming at the US, they could afford to raise interest rates to defend the dollar, and also enact a policy of Quantitative Tightening.

A bond market collapse is what the US authorities want in my opinion. It will be a clear sign that its trading partners now want to engage in balanced and sustainable trade.

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There is a theory that if you print money that there will be a bond market collapse.

But others say that the deleveraging going on with the banking crisis has caused such a rapid and violent deflation, that printing money at that rate that the Bank of England are doing, will not halt the deflation.

Bonds which pay a positive rate of interest are then even more positive to own if there is still deflation around.

The test of this alternative theory is to look at the bond market. Is the price of Gilts collapsing?

Doesnt mean to say that there wont be a collapse. My personal opinion is that we might see a collapse, but not here. Try watching the US.

And would a collapse in the US bond market be such a bad thing? It could only be brought about by countries such as China and Japan and other big US bondholders selling their bonds. But what would they do with the cash? They would have to buy American with it. Will the sight of big orders help or hinder the US economy? With that sort of cash coming at the US, they could afford to raise interest rates to defend the dollar, and also enact a policy of Quantitative Tightening.

A bond market collapse is what the US authorities want in my opinion. It will be a clear sign that its trading partners now want to engage in balanced and sustainable trade.

"Deflation or Hyperinflation

The short answer is both.

The prerequisite for hyperinflation is a deflationary depression. There is a major misconception among many economist and financial experts that the deflationary scenario we are in now will lead to a deflationary collapse. But this is a fallacy. The current deflation is the necessary initial stage of hyperinflation."

he then says:

"Governments will of course continue to print money to attempt to "save" the world. But what government don't understand is that no amount of money printed is going to save the financial system or the world economy. Throughout history no country has ever solved a credit crisis by printing more money.

The consequences of this deflationary asset and credit collapse will be hyperinflation in many countries including the US and the UK."

clicky thingy

so we are in the deflationary phase right now....world wide deflation.

they have already shown us what they want to do & ARE doing it...printy printy

so will they just stop printing & say they have made a mistake

or

keep printing

the only way I would have chosen the first option would have been with regime change. Well we have the new boss & to me he looks the same as the old boss. Same agenda.

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Who are the winners and who are losers in a bond market collapse?

will it not be highly deflationary ?

winners - those with cash?

losers - those in debt ?

winners - those with cash?

Yes, your cash will multiply in value something like 50 times over; a 5,000% increase.

losers - those in debt ?

If the Government defaults you can assume everyone else will as well... The real losers will be anyone holding credit, anyone with money in the stock market, anyone with money in the bank. Remember bank credit is worth no more than State credit so if there is a bond market collapse there will be no money in the banks.

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