Jim Rogers calls long dated US Treasuries last great bubble

Bloomberg
10/14/08
Wes Goodman and Anchalee Worrachate

The risk is that yields rise as the U.S. increases debt sales to fund the bank rescue plan and pumps money into the economy, said investor Jim Rogers, chairman of Rogers Holdings and former partner of hedge fund manager George Soros who forecast the start of the commodities rally in 1999.

"The U.S. government is taking on gigantic amounts of debt,” Rogers said in an interview in Singapore, where he lives. "They’re printing gigantic amounts of money. Printing money has always led to more inflation. The last bubble in the world that I can find is long-term U.S. government bonds.”

Rogers said he is "shorting” 30-year debt, or betting prices will fall. Wrightson ICAP LLC in Jersey City, New Jersey, an economic advisory firm specializing in government finance, says the U.S. is likely to sell more of the debt to fund its bailout plan, along with more frequent auctions of 10-year notes, the reintroduction of three-and seven-year notes and increased sales of all maturities.

My comment: This is exactly how I am playing this bond bubble. We are looking at $1 trillion plus annual deficits and a tsunami of entitlement spending, that we can’t pay, coming down the line over the next decades. As I said the other day shorting treasuries now is like buying gold in 1999 and holding until today. Why would anyone loan money to a corrupt government that has no ability or intention of ever paying the money back. If you need a reminder look at the debt counter on this site. The debt is increasing and is only going higher when the "magic one" takes office in January.
You have to look at the big picture and not get caught up in the day to day emotional swings that are fueled by 24 financial noise given off by the media. If there is anyone out there that can tell me how we avoid defaulting on this debt and/or massive infaltion I surely would like to hear about it.

John Polomny
The Real Deal