Is somebody getting nervous? This is the question which readers may want to ask themselves after another mainstream scribe decided to “rebut” my rebuttal, starting with continuing to misspell my name.
Beyond that we see little but a repeat of the rather vacuous criticism directed at my work by Joe Weisenthal. There is a whole lot of rhetoric about the “tremendous demand” for U.S. Treasuries, but not a single fact to substantiate this assertion.
Further, once again there was absolutely nothing about any ceiling for these prices. Apparently we have another writer who believes that people will pay any price for the privilege of lending money to the insolvent U.S. government.
It appears that it will be necessary for me to say a little more on this subject…
The Truth About Deficits And Interest Rates
Jeff Nielsen is back with a defense of the idea that the Treasury market is witnessing the “ultimate financial contradiction” maximum supply and maximum prices.”.
Nielsen believes that Treasury prices should be falling because the inventory of Treasury bonds has grown to historically unprecedented levels. But prices for Treasury bonds remain near record highs – and yields near record lows…